What is leasehold?
Principle
Last Update 3 years ago
Leasehold is a type of property ownership in England and Wales.
When buying a property in England or Wales there are two main types of ownership:
1. Freehold
Someone who owns the freehold of a property owns the property and the land it stands on for an unlimited period.
2. Leasehold
Unlike a freeholder, a leaseholder owns the property but not the land on which it is built - that is owned by the freeholder. Leaseholders own the property for a set number of years depending on the length of the lease.
A leaseholder has the right to live at the property for a set period of time stated in the lease, subject to payment of certain charges, such as ground rent and service charge, and compliance with other terms and conditions specified in the lease.
There is also a tenure called Commonhold. This is rare and not covered in these FAQs.