Glossary · UK
What is Leasehold?
Property ownership for a fixed term — you own the home but not the land.
Full Definition
Leasehold means you own a property for a fixed term (typically 99-999 years) but don't own the land or building it sits in — a freeholder does. Most UK flats are leasehold. Pay ground rent (banned for new leases from 2022 but legacy leases still pay) and service charges. Lease length matters: under 80 years triggers «marriage value» making extension expensive. Leasehold reform (2024) makes extensions cheaper and bans new leasehold houses. Right to Manage allows leaseholders to take over management. Always check lease length, ground rent, service charge history before buying.
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Disclaimer: Definitions are for guidance only. For decisions about your tax, savings, property or pension situation, always consult a qualified professional or refer to gov.uk.