If you own the freehold of your home, it implies that you own the building and the land it sits on. If your residential or commercial property is leasehold, you own the residential or commercial property however not the structure or land and must pay ground lease to the freeholder.

Freehold vs leasehold: the crucial differences

Do you understand what is suggested by a freehold or leasehold residential or commercial property? Experienced estate representative, Ian Harris assists discuss the key distinctions.
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What does leasehold suggest?

You are buying a lease from the freeholder for the right to reside in the residential or commercial property for a set variety of years. You will not technically own the residential or commercial property outright, the freeholder (or proprietor) will continue to own the residential or commercial property and the ground it rests on. Leasehold is commonplace when buying a flat or home as it sits within a bigger building.

The number of leasehold homes has however grown recently, specifically with brand-new builds that are sold straight through the developer.

Recent modifications to the law

The Leasehold and Freehold Act 2024 is now law, but individual parts of the Act are being carried out one at a time so not whatever has actually been done yet. You can see the progress of the changes here. Eventually there will be a restriction on the sale of brand-new leasehold flats, making Commonhold the new default tenure rather, where each unit-holder owns the freehold of their home.

Learn more about what’s altering for leasehold

Main things to understand that have been carried out up until now are:

- If you own a flat, you can now extend your lease without waiting 2 years first (since January 2025).

• This means that more leaseholders in mixed-use structures can obtain the right to manage