Key Differences Every Buyer Should Know

When buying a home, most people focus on location, price, and layout. But there's another important detail that can affect your finances and future plans: whether the property is freehold or leasehold.

Understanding the difference can save you from surprises down the line. Here’s a simple guide to help you decide what’s right for you.

What Does Freehold Mean?

If you buy a freehold property, you own both the building and the land it stands on. You are fully responsible for maintaining the property, including the roof, walls, and garden.

• Most houses are freehold
• No ground rent or service charges
• You can make changes (within planning rules) without asking a landlord

What Is Leasehold?

With a leasehold, you own the property for a set period, but not the land it sits on. The land remains owned by the freeholder (sometimes called the landlord).

• The lease term matters — anything under 80 years can make mortgages harder to get
• Most flats and some new-build houses are leasehold
• You may pay ground rent, service charges, and permission fees to the freeholder

Key Differences at a Glance

Things to Watch Out For With Leasehold

• Short leases can reduce property value and increase difficulty getting a mortgage.
• High service charges can add significant ongoing costs.
• Permission fees may be required for even minor changes like replacing windows.
• Ground rent increases could be built into the lease – check the small print!

Can You Extend or Buy the Freehold?

Yes. Leaseholders usually have the right to extend the lease or buy the freehold after owning the property for a certain period. It can be complex, but there are legal protections to support you.

Which Is Right for You?

• Unsure? Speak to a mortgage broker and solicitor before committing.
• Buying a house? Aim for freehold if possible.
• Buying a flat? Leasehold is common – just check the lease length, costs, and conditions.

how we can help

Whether you're looking at freehold or leasehold homes, getting into the property ladder doesn’t need to be stressful. At Windsor Hill Mortgages, we help clients:

• Explain what the ownership terms mean for your mortgage
• Help you understand additional costs
• Recommend trusted legal advisers for lease reviews

📞 Call us on 01225 962456
📧 Email us at enquiries@windsorhillmortgages.co.uk