Freehold means you own the property and the land it stands on, with no lease running down. Leasehold means you own the property only for a fixed number of years under a lease from the landlord, sometimes called the freeholder, and ownership returns to them when the lease ends. GOV.UK says most flats are leasehold, and houses can be too.
Two homes on the same street can look identical and still come with very different strings attached. The difference sits in the paperwork: whether you own the place outright, or you own a lease that counts down year by year. Here's what the GOV.UK guide Leasehold property says that means for your rights, your bills and your options later on.
Freehold and leasehold side by side
| Freehold | Leasehold | |
|---|---|---|
| How long you own it | No lease and no end date | A fixed number of years, set out in the lease |
| Who you deal with | No landlord over you | The landlord (freeholder), under the conditions of your lease |
| Typical homes | Houses bought outright, and flats where owners hold a share of the freehold | Most flats, and houses bought through shared ownership schemes |
| Regular charges to a landlord | None | A service charge if the lease sets one, and possibly ground rent |
| Alterations and repairs | No lease conditions to follow | The lease may say you need permission, and who handles repairs |
| When time runs out | Nothing runs out | Ownership returns to the landlord, though you can ask to extend at any time |
What a leaseholder signs up to
Your lease spells out the conditions you've agreed to: whether you need permission to make alterations, how much you'll pay to maintain the property, and whether you or the landlord is responsible for repairs and for dealing with noisy neighbours. GOV.UK warns that if you don't follow those conditions you might be taken to court and ordered to pay for any damage, and the court may take your lease away. Leaseholders in England should also check whether they'll have to pay to replace cladding or fix other safety problems with their building.
In return, you have rights. You can get information about service charges or insurance, know the landlord's name and address, be consulted about certain maintenance and running charges, and challenge certain charges in some circumstances.
Service charges, ground rent and the consultation thresholds
If you pay a service charge, you can ask for a summary showing how it's worked out and what it's spent on, and see the paperwork behind it, such as receipts. GOV.UK says your landlord must give you this information, and it's a criminal offence if they don't. Building insurance is usually the landlord's job and becomes part of your service charge. You might also have to pay into a reserve or sinking fund for big repairs like a new roof, and you won't usually get that money back if you move.
Ground rent depends on when your lease was granted. For leases granted before 30 June in 2022, you don't have to pay unless your landlord has sent a formal, written demand, and they can recover unpaid ground rent going back 6 years. For new leases granted from 30 June in 2022 onwards, you usually can't be charged more than a 'peppercorn' ground rent, which has a value of zero. That change doesn't help if you bought an existing lease from another leaseholder on or after that date: you'll still pay what that lease says.
GOV.UK says that, as of Nov 2026, you have the right to be consulted before paying more than 250 pounds for planned work, or more than 100 pounds per year for work and services lasting more than 12 months. This is known as a 'Section 20' consultation. If you think a charge is unreasonable or the work is poor, you may be able to apply to a tribunal, unless you've already agreed to pay it, it's a fixed charge, or a court is already dealing with it.
The 80 year line on a lease
If you only remember one number from the GOV.UK guide, make it this one. When there are 80 years or less left on your lease, the bill for extending it rises significantly. You can ask the landlord to extend at any time, and if you qualify you might be able to add 90 years on a flat or 50 years on a house. The Leasehold Advisory Service has a lease extension calculator that gives a guide for flats. And if a lease does run out, GOV.UK says that doesn't mean you automatically have to leave, but you'll have fewer rights and legal protections, so get urgent advice if yours is close to the end.
Buying the freehold or taking over management
Leaseholders aren't stuck with the arrangement forever. You can ask the landlord to sell you the freehold at any time. In a block of flats you'd buy a share of the freehold; in a house, you may have the right to buy it. Landlords who want to sell the freehold of a building containing flats usually have to offer the leaseholders the first chance to buy it, known as the right of first refusal.
If the building is badly run, flat leaseholders can apply to a tribunal to appoint a new manager, which means proving bad management and first sending the landlord a 'Section 22 notice'. The alternative is the Right to Manage, which lets leaseholders take over certain management responsibilities without proving bad management. For disputes, GOV.UK points to mediation, which is confidential and usually quicker than court, and to free advice from the Leasehold Advisory Service. It's very rare for a landlord to end a lease and evict you: they'd need to send a formal written notice and get a court's permission.
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My advice on freehold or leasehold
It depends on how long is left on the lease, what the service charge and ground rent look like, and how much control you want over repairs and changes. With a leasehold, I'd ask for the service charge summary, the ground rent terms and the years remaining before going any further, and I'd treat anything near 80 years as a red flag to raise with your solicitor. GOV.UK's Leasehold property guide and the Leasehold Advisory Service are the two places to check your rights before you commit.
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Frequently asked questions
What is the main difference between freehold and leasehold?
With freehold you own the property and its land with no end date. With leasehold you own it for a fixed number of years under a lease, and ownership returns to the landlord when the lease ends.
Are flats always leasehold?
GOV.UK says most flats are leasehold. Leaseholders in a block can buy a share of the freehold, and houses can be leasehold too, usually when bought through a shared ownership scheme.
Is ground rent still payable on a lease?
For leases granted before 30 June in 2022, only after a formal written demand. New leases granted from that date usually carry a peppercorn ground rent with a value of zero.
Can I extend my lease?
You can ask your landlord at any time. If you qualify, you might add 90 years on a flat or 50 years on a house. Extending gets significantly harder on the wallet once 80 years or less remain.
Can leaseholders buy the freehold?
Yes. You can ask the landlord to sell at any time, and landlords selling the freehold of a block of flats usually have to offer leaseholders the first chance to buy it.
Who checks service charges are fair?
You can ask your landlord for a summary and the receipts behind it, and you may be able to apply to a tribunal if a charge is unreasonable. The Leasehold Advisory Service gives free advice.
