Answers · UK 2025/26
What's the difference between leasehold and freehold in the UK?
Freehold means you own the property and land outright, in perpetuity — most UK houses. Leasehold means you own the property for a fixed term (typically 99-999 years) but not the land — most UK flats. Leasehold pays ground rent and service charges.
Full answer
Freehold (most UK houses): you own the property and the land it sits on, in perpetuity. No ground rent, no service charges to third parties. Sale is simple. Leasehold (most UK flats): you own the property for a fixed term granted by the freeholder (typically 99-999 years). Pay ground rent (banned for new leases from 2022 but legacy leases still charge) and service charges for building maintenance. Lease length matters: under 80 years triggers «marriage value» making extension expensive (£5k-£50k+). Right to Manage allows leaseholders collectively to take over building management. Leasehold reform (2024) bans new leasehold houses, limits ground rents, makes extensions cheaper. «Share of freehold» combines flat ownership with freehold control — common in converted houses. Scotland uses different system («heritable» = freehold equivalent, «long lease» exists but rare).
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.