Leasehold meaning
Leasehold means you own a property for a fixed number of years under a lease, while a freeholder owns the building and land. Most flats in England are leasehold. Leaseholders typically pay service charges and may pay ground rent, and the remaining lease length affects value and mortgage availability.
Leasehold is one of the terms you are likely to meet when buying or selling a home in England. Here is what it means in plain English, and where it fits into your move.
What to check before buying leasehold
Ask for the remaining lease term, the current service charge and ground rent, details of any planned major works, and any restrictions in the lease on pets, subletting or alterations.
Leasehold purchases usually take longer because the management pack has to come from the freeholder or managing agent.
Key takeaway
Leasehold means you own a property for a fixed number of years under a lease, while a freeholder owns the building and land. Most flats in England are leasehold. Leaseholders typically pay service charges and may pay ground rent, and the remaining lease length affects value and mortgage availability.
Frequently asked questions
Why does lease length matter?
Shorter leases can be harder to mortgage and more expensive to extend, and they can reduce the property's value. Your conveyancer will report on the remaining term and any lender requirements.
Questions to ask
MyMoveMate includes leasehold-specific questions for your conveyancer and estate agent.
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