If you’re looking for advice about leaseholds, our property solicitors are here to help. Leasehold is a particular type of property ownership that comes with its own unique legal rights and responsibilities. Many flats in the UK are sold on a leasehold basis but leasehold can apply to other properties too.
Leasehold Properties
In short
Owning a leasehold property means you own the property itself for a fixed number of years, but not the land it stands on — that stays with the freeholder. Leasehold is a specialist area of property law, so it’s worth getting advice before you buy, sell, or make changes to a leasehold home. Call 08082747557 for a free initial assessment.
Leasehold vs freehold
With a freehold property, you own the property and the land it sits on outright, for an unlimited time, and you’re free to make changes without anyone else’s approval. With a leasehold property, you own the property for a fixed term set out in the lease, you may need the landlord’s (freeholder’s) approval before making alterations, and you’ll typically pay service charges, and sometimes ground rent, on top of your mortgage. Leasehold properties are usually cheaper to buy than an equivalent freehold, which is part of why they remain popular, particularly for flats.
What to check before buying leasehold
- The length of the lease — a short remaining term can make a property harder to mortgage or sell, and more expensive to extend later; see our guide to leasehold extensions
- Ground rent — some older leases include ground rent that can increase over time, though the Leasehold Reform (Ground Rent) Act 2022 removed ground rent on most new residential leases granted from 30 June 2022 onwards
- Service charges — ongoing payments towards the maintenance and insurance of the building, usually set by the landlord or a management company
- Restrictions in the lease — many leases restrict alterations, subletting, or keeping pets without the landlord’s consent, so it’s important to check before you buy, not after
Buying or selling a leasehold property? Call 08082747557 for advice before you commit.
Taking more control as a leaseholder
If you want more control over your leasehold property in the long term, there are two main routes. You can look at extending your lease before it runs down too far, which protects the property’s value and makes it easier to sell or remortgage. Or, together with other leaseholders in the building, you may be able to pursue leasehold enfranchisement — buying the freehold outright. Where a building is managed poorly, leaseholders can also look at exercising their right to manage the building themselves, without needing to buy the freehold.
Related Services
- Extend the lease on your flat Leasehold Extensions
- Buy the freehold with other leaseholders Leasehold Enfranchisements
- Take over management of your building Right to Manage
- Instruct a solicitor to handle your house move Conveyancing
- Get general advice on a housing dispute Housing Disputes