Leasehold Ownership
Property ownership type
You own the property for a fixed period (typically 99-999 years) but not the land. You lease from the freeholder.
What This Means
With leasehold, you own the flat or house for a set number of years, but the freeholder (landlord) owns the land. When the lease expires, ownership reverts to the freeholder.
Practical Advice
- Check lease length - under 80 years becomes problematic
- Budget for ground rent and service charges (can increase)
- You may need permission for alterations
- Consider lease extension costs if under 90 years
- Right to extend lease after 2 years of ownership
- Some can buy the freehold (enfranchisement)
Key Points
- Ground rent and service charges apply
- Lease length affects property value and mortgageability
- May need permission for alterations
- Can extend lease or buy freehold in some cases
- Leases under 80 years become harder to mortgage
Additional Information
Always check the remaining lease length. Properties with less than 80 years can be expensive to extend and harder to sell.