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Leasehold vs Freehold: Pros and Cons for Buyers

Most London flats are leasehold.

Leasehold vs Freehold: Pros and Cons for Buyers Residential Property Services in London

Updated October 2026 · Fraser Bond

Buying · Tenure

Leasehold vs freehold

Freeholdyou own it all
Leaseholdtime-limited
Share offreehold
Servicecharges
In short: Freehold means you own the building and land outright, typical for houses. Leasehold means you own the right to occupy for a fixed term, usually for flats, paying service charges and sometimes ground rent, with the freeholder managing the building. A share of freehold, where flat owners jointly own the freehold, gives more control. When buying leasehold, check the lease length, ground rent, service charges, major works planned and any restrictions. The Leasehold and Freehold Reform Act 2024 is changing leaseholders' rights as it comes into force.

Frequently asked questions

Is leasehold bad?

Not necessarily; check the lease terms.

What is share of freehold?

Flat owners jointly own the freehold.

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