Freehold
Freehold ownership grants complete ownership of the property and land without a time limit. Owners are responsible for maintenance and have freedom for alterations. There are no ground rents or service charges.
Tenure in the UK defines the legal right to occupy a property. The main types include Freehold, Leasehold (including Shared Ownership), Share of Freehold, and Commonhold.
Freehold ownership grants complete ownership of the property and land without a time limit. Owners are responsible for maintenance and have freedom for alterations. There are no ground rents or service charges.
Leasehold is a type of rental; it is a long term tenancy contract agreement. Leasehold means buying the right to live in a property for a fixed term.
When you 'buy' a leasehold property, you do not own any of the land or building: you acquire the right to occupy a part of it for the time remaining on the lease. It's akin to long-term tenancy rather than ownership. So, leaseholders are just tenants not home owners.
Ground rent and service charges are typically paid to the freeholder. Lease extensions can be costly, and alterations often require the landlord's permission.
Leasehold properties may suffer from escalating ground rents, high service charges, and restrictive lease terms.
Lease length affects property value and mortgage eligibility, ideally having at least 80 years remaining.
A form of leasehold where you buy a percentage of the property and pay rent on the remainder. Purchasing the remaining share might require permission.
Shared Ownership may require permission to sell.
Combines elements of both Freehold and Leasehold. Owners hold a share in the freehold of the building and a lease for their property. Ground rents and service charges may still apply, but owners have more control over management decisions.
Owned jointly by property owners, commonhold properties have no overall landlord. Each unit owner owns the freehold of their unit, while a Commonhold Association manages common areas.
Commonhold properties may face enforcement challenges and conversion complexities.