If you own the freehold of your home, it suggests that you own the structure and the land it rests on. If your residential or commercial property is leasehold, you own the residential or commercial property but not the building or land and should pay ground lease to the freeholder.

Freehold vs leasehold: the key differences

Do you comprehend what is suggested by a freehold or leasehold residential or commercial property? Experienced estate representative, Ian Harris helps discuss the crucial differences.

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What does leasehold suggest?

You are acquiring a lease from the freeholder for the right to live in the residential or commercial property for a set number of years. You won't technically own the residential or commercial property outright, the freeholder (or landlord) will continue to own the residential or commercial property and the ground it rests on. is prevalent when purchasing a flat or apartment as it sits within a larger structure.

The number of leasehold homes has actually however grown over the last few years, specifically with brand-new builds that are sold straight through the designer.

Recent changes to the law

The Leasehold and Freehold Act 2024 is now law, but individual parts of the Act are being carried out one at a time so not whatever has been done yet. You can see the progress of the modifications here. Eventually there will be a ban on the sale of new leasehold flats, making Commonhold the brand-new default tenure rather, where each unit-holder owns the freehold of their home.

Find out more about what's altering for leasehold

Main point to know that have actually been executed so far are:

- If you own a flat, you can now extend your lease without waiting 2 years first (since January 2025).

• This indicates that more leaseholders in mixed-use buildings can request the right to handle