Leasehold vs freehold, in plain English

Freehold means you own the property and the land it stands on, outright and forever. Most houses in England and Wales are freehold, and it’s the simplest form of ownership.

Leasehold means you own the right to live in the property for a fixed number of years, but not the land underneath. Most flats are leasehold. You pay a ground rent to the freeholder and usually a service charge towards maintaining shared areas.

The number that matters most is the lease length. Anything under about 80 years starts to affect value and can be expensive to extend, so always ask how many years remain. Also ask the annual ground rent and service charge, and whether either has risen sharply in recent years.

Share of freehold and commonhold sit in between: you own your flat and a share of the building or its management. They remove some of the classic leasehold frustrations, which is why buyers increasingly look for them.

None of this should put you off a leasehold home. It just means asking the right questions early. On Bybricks, sellers can list the lease length, ground rent and service charge up front, so you know before you enquire.