{"id":1090,"date":"2026-06-08T09:40:21","date_gmt":"2026-06-08T09:40:21","guid":{"rendered":"https:\/\/www.yopa.co.uk\/homeowners-hub\/?p=1090"},"modified":"2026-06-08T14:56:26","modified_gmt":"2026-06-08T14:56:26","slug":"what-is-leasehold","status":"publish","type":"post","link":"https:\/\/dy36-2.stage.yopa-dev.co.uk\/homeowners-hub\/what-is-leasehold\/","title":{"rendered":"What is leasehold?"},"content":{"rendered":"\n

With new builds proving popular with buyers across the country, some homeowners have found themselves trapped in unsellable and unmortgageable properties. Soaring ground rent charges, punitive permission fees and developers selling freeholds behind homeowners\u2019 backs have all made the headlines over the past few years, but many people still don\u2019t understand the difference between freehold and leasehold.<\/p>\n\n\n\n

It\u2019s not just those who have bought new builds that are at risk. With the increasing number of houses being converted into flats in overpopulated cities, this problem can affect first-time buyers, downsizers and everyone in between. <\/p>\n\n\n\n

Mike Scott, Chief Property Analyst at full-service estate agents Yopa,\nanswers the most common questions buyers have about leaseholds.<\/p>\n\n\n\n

What\u2019s\nthe difference between freehold and leasehold?<\/strong><\/h3>\n\n\n\n

Most UK houses are freehold<\/a> properties which means you buy the building and the land becomes your property. Subject to rules on building regulations, planning permission, Conservation Areas and listed buildings, you can generally do what you want. Just watch out for property deeds that include \u201crestrictive covenants<\/a>\u201d that limit your use of it in some way. <\/p>\n\n\n\n

A leasehold is a form of property tenure that is centuries old. It\nstarted to be widely used for residential properties after World War II, as\nhome ownership rates grew and people started to expect to buy flats rather than\njust renting them. <\/p>\n\n\n\n

Leaseholds don\u2019t apply in Scotland because they have different laws.\nIn the UK they have become increasingly controversial in recent years. <\/p>\n\n\n\n

So,\nwhat are you buying with a leasehold? <\/strong><\/h3>\n\n\n\n

With a leasehold property, you buy the right to occupy and use the property for a fixed period of time, rather than owning the land and building outright. The freeholder retains ultimate ownership of the property. Lease terms are commonly 99, 125, 250 or 999 years, depending on when the lease was granted and the type of property.<\/p>\n\n\n\n

This right is transferable and can be bought and sold like a freehold\nproperty, but there will likely be restrictions on what you can do\nto preserve the external appearance and to avoid disturbances to\nother leaseholders. The land and building will be owned by a freeholder – the\ncompany that built it or a third party. You will have to pay an external\nmanagement company to coordinate the maintenance of external and communal\nareas, such as roofs, lifts and entrance halls.<\/p>\n\n\n\n

How\nwill it affect me? <\/strong><\/h3>\n\n\n\n

You might have to put down a larger percentage of the purchase price\nas a deposit. Also, your conveyancing costs will be higher as it will take\nlonger to complete than it would for a freehold property.<\/p>\n\n\n\n

You may also find the property more difficult to eventually sell, as\nthe term of the lease would have reduced during your time there.<\/p>\n\n\n

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Get a rough estimate of your home's value now.<\/p> <\/div>\n <\/div>\n<\/div>\n <\/a>\n <\/div>\n

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\n Face-to-face valuation<\/span> <\/div>\n
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Book an appointment with your local Yopa agent.<\/p> <\/div>\n <\/div>\n<\/div>\n <\/a>\n <\/div>\n<\/div>\n\n\n\n\n

Does\nthe length of a leasehold matter?<\/strong><\/h3>\n\n\n\n

It can be difficult to get a mortgage on a lease that is less than 70\nyears. Your eventual buyer will likely need a mortgage, so there should\nideally be at least 80 years left when you are ready to sell. <\/p>\n\n\n\n

Following the implementation of the Leasehold and Freehold Reform Act 2024<\/a>, the standard lease extension terms have been increased for both houses and flats. You will now generally have the right to extend the lease<\/a> by 990 years by paying the leaseholder, although the cost can be high if the lease has a short term left.<\/p>\n\n\n\n

Are\nthe rules different depending on whether your property is a house or a flat?<\/strong><\/h3>\n\n\n\n

Party walls<\/a> for semi-detached and terraced houses will usually be shared with the neighbours, so be sure to confirm who owns fences and boundaries. <\/p>\n\n\n\n

It gets more complex when there are shared communal areas like\nhallways, stairs, lifts and the roof, and several flats on different levels\nwith different owners. There must be an arrangement for the ownership and\nmaintenance of the land and the shared parts of the building.  <\/p>\n\n\n\n

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Are\nthere annual fees?<\/strong><\/h3>\n\n\n\n

The freeholder, or more usually a maintenance company, will charge an\nannual fee for maintaining and insuring the building, which you will have to\npay. <\/p>\n\n\n\n

\u201cRight to manage\u201d legislation allows the majority of the leaseholders\nto take control and choose their maintenance company, but it can often be\ndifficult to get the majority together, especially in a large block.<\/p>\n\n\n\n

There should be a \u201csinking fund\u201d saved up from the annual fee over the years for major works like external repainting or lift replacement. Your solicitor must check the maintenance company\u2019s accounts before exchanging contracts<\/a>. Ensure that you\u2019re happy with the costs and the size of the sinking fund.\u00a0 <\/p>\n\n\n\n

What\nabout ground rent?<\/strong><\/h3>\n\n\n\n

Whilst the Leasehold Reform (Ground Rent) Act 2022<\/a> stopped ground rent being charged for new leases on homes bought after June 3, 2022, there are still many existing leaseholders who are subject to ground rent charges. The Leasehold and Freehold Reform Act 2024 also stopped short of abolishing existing ground rents for current leaseholders, although further reform is being considered<\/a>. <\/p>\n\n\n\n

What\ndoes \u201cshare of freehold\u201d mean?<\/strong><\/h3>\n\n\n\n

Leaseholders acting collectively have the right to buy the freehold of their building, but it can be difficult and expensive. Leasehold properties advertised as \u201cshare of freehold\u201d mean that this is being sold with the lease. It will be easier to get permission to make changes or extend the lease, although other shared freeholders will have to consent. <\/p>\n\n\n\n

Leaseholds are most commonly sold with a share\nof freehold in situations where a single house has been converted into a few\nflats.<\/p>\n\n\n\n

And\n\u201ccommonholds\u201d? <\/strong><\/h3>\n\n\n\n

This is a new form of property ownership where each individual owns\nthe freehold of their own flat and the freehold for the land. <\/p>\n\n\n\n

Communal areas are owned by a company of which the commonholders<\/a> are automatically members, so they can collectively manage and control the building. <\/p>\n\n\n\n

There is no ground rent or lease expiry and fewer restrictions on what\nyou can do with your own flat, but there are still maintenance charges. <\/p>\n\n\n\n

It\u2019s not legally tried-and-tested like leasehold or freehold, so there\nmay be snags that have not yet been tested in court and mortgage lenders may be\nreluctant due to its newness. <\/p>\n\n\n\n

Now\nwhat? <\/strong><\/h3>\n\n\n\n

If you\u2019re buying a flat then\u00a0there\u2019s unlikely to be an alternative to leasehold. But most flat-owners are able to buy the leasehold for their flat, live in it, and sell it<\/a> again, without any real problems.\u00a0<\/p>\n\n\n\n

We\u2019d always suggest that you seek advice from a solicitor before buying\nor selling any property and be sure to ask questions about the\nleasehold\/freehold situation. <\/p>\n\n\n

\n
\n \n
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\n \"\" <\/div>\n
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\n Instant online valuation<\/span> <\/div>\n
\n

Get a rough estimate of your home's value now.<\/p> <\/div>\n <\/div>\n<\/div>\n <\/a>\n <\/div>\n

\n \n
\n
\n \"\" <\/div>\n
\n
\n Face-to-face valuation<\/span> <\/div>\n
\n

Book an appointment with your local Yopa agent.<\/p> <\/div>\n <\/div>\n<\/div>\n <\/a>\n <\/div>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"

With new builds proving popular with buyers across the country, some homeowners have found themselves trapped in unsellable and unmortgageable properties. Soaring ground rent charges, punitive permission fees and developers selling freeholds behind homeowners\u2019 backs have all made the headlines over the past few years, but many people still don\u2019t understand the difference between freehold<\/p>\n","protected":false},"author":4,"featured_media":1091,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1090","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying"],"acf":[],"yoast_head":"\nWhat is leasehold? - Yopa Homeowners Hub<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dy36-2.stage.yopa-dev.co.uk\/homeowners-hub\/what-is-leasehold\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is leasehold? - Yopa Homeowners Hub\" \/>\n<meta property=\"og:description\" content=\"With new builds proving popular with buyers across the country, some homeowners have found themselves trapped in unsellable and unmortgageable properties. 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