Freehold or Leasehold – Understanding the differences and what to look out for

What’s the difference between freehold and leasehold?


Houses are usually freehold. Subject to any mortgage, you own everything outright – the building and surrounding land. Flats are usually leasehold. You own the right to live in it for the remainder of the lease (it’s a long lease, often 99 or 125 years), and to access any communal areas. The freeholder owns the building and surrounding land. When the term of the lease comes to an end, and if it is not extended, the flat reverts to the freeholder.

So if I buy freehold, I can do what I like with the property and the land it’s on?

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