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Freehold vs Leasehold: Understanding Tenure Types

Freehold vs Leasehold: Understanding Tenure Types

When you search the Land Registry, one of the first things you'll see is whether a property is registered as freehold or leasehold. This distinction fundamentally affects your rights as an owner.

What Is Freehold?

Freehold means you own the property and the land it sits on outright, with no time limit. You are responsible for maintaining the property and land, and there is no ground rent to pay.

Most houses in England and Wales are freehold. The title register will show the estate as "Freehold" in Section A.

What Is Leasehold?

Leasehold means you own the property for a fixed period under the terms of a lease granted by the freeholder (landlord). When the lease expires, ownership reverts to the freeholder.

Leasehold is common for:

  • Flats and apartments (the building's freehold is usually held separately)
  • Some new-build houses (though this practice has been criticised and is being reformed)
  • Commercial properties

    • Key Differences

    **Ownership duration**: Freehold is permanent; leasehold expires.

    **Ground rent**: Leaseholders typically pay annual ground rent to the freeholder. Freehold has no ground rent.

    **Service charges**: Leaseholders in flats usually pay service charges for building maintenance. Freeholders are responsible for their own maintenance.

    **Restrictions**: Leases often contain covenants restricting alterations, subletting, or use. Freehold properties may still have restrictive covenants but fewer restrictions overall.

    **Lease length matters**: A lease below 80 years becomes difficult to mortgage and expensive to extend. If you're buying a leasehold property, always check the remaining term.

    How to Check Tenure Type

    The tenure type appears in the title register Section A. You can also see it in our search results before purchasing any documents.

    Commonhold

    Commonhold is a newer form of ownership designed for flats, where each flat owner owns their unit freehold and jointly owns the common parts. It remains rare in practice.

    Search Property Tenure

    Find any registered property and check its tenure type on Online Land Registry.