Country guide · United Kingdom
Leasehold and freehold explained
Ground rent, service charge, lease length and the questions to ask before buying a flat.
Updated: 04/10/2026
In brief
- Leasehold means you own for a fixed term, not the building or land
- Service charges and ground rent are set by the lease and can rise
- A short lease reduces value and mortgageability
- Extending a lease costs money and takes time
What a lease says
The lease sets the term, ground rent, service charge, rules on alterations and subletting, and who is responsible for repairs to the structure and common parts.
Checking costs
Ask for the last accounts, the budget, the reserve fund position and any planned works. Rising service charges and high ground rents are common sources of disputes.
Lease length
As the remaining term falls, the property becomes harder to mortgage and more expensive to extend. Buyers commonly check the remaining term before making an offer.
Share of freehold
Owning a share of the freehold gives leaseholders more control over managing agents and service charges, and makes lease extensions easier to arrange.
Official sources and further reading
National starting points only. State, provincial and territorial rules may add further requirements.
Professionals in United Kingdom
Documented profiles of agents, developers, managers, investors and architects, listed in a neutral order.
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General information, not legal, tax or financial advice.