When purchasing or owning a property in the UK, one of the most important distinctions to understand is whether it's freehold or leasehold. This difference will impact your ownership rights, responsibilities and any long-term plans for the property.
How do I find out if a property is leasehold or freehold?
If you’re unsure whether your property is freehold or leasehold, there are lots of free and easy ways to find out. By following these steps, you can easily check whether your property is leasehold or freehold.
1. Check the property title
The Land Registry holds records for most properties in England and Wales. You can request a copy of your property’s title deed for a small fee. The title will clearly state whether the property is freehold or leasehold.
2. Review the purchase documents
When you bought the property, your solicitor should have provided documents detailing its ownership structure. Look for terms like 'leasehold' or 'freehold' in the paperwork.
3. Ask the freeholder or management company
If you suspect the property might be leasehold, contact the freeholder or management company for confirmation. They'll be able to guide you on the specifics for your property.
4. Check your mortgage agreement
Mortgage documents often specify whether a property is freehold or leasehold, as this impacts loan terms and conditions.
5. Consult your conveyancer
Consult the solicitor or conveyancer who handled your property transaction. They’ll have access to relevant records, with some solicitors keeping records for up to six years.
Five questions to ask yourself if you're not sure
If you’re still unsure about whether your property is leasehold or freehold, asking yourself a few quick-fire questions can help figure it out. These considerations often reveal the type of ownership arrangement tied to your property.
1. Do I pay ground rent or service charges?
If you’re paying regular ground rent or service charges to a freeholder or management company, your property is almost certainly leasehold. These fees are common in leasehold agreements, covering the cost of maintaining communal areas or the land.
2. Who owns the land the property is built on?
In a leasehold arrangement, you own the property itself but not the land it sits on, which belongs to the freeholder. As a freeholder, you own both the property and the land outright.
3. Is the property a flat or a house?
Most flats in the UK are leasehold due to shared structures and communal areas, making it easier to manage responsibilities among multiple owners. Houses are typically sold as freehold properties, but there are exceptions (e.g., leasehold houses on private estates).
4. Are there restrictions on modifying the property?
Leasehold agreements often include clauses that restrict what you can do with your property, such as prohibiting certain types of renovations or requiring permission from the freeholder. Freehold properties generally don’t have these kinds of restrictions, giving you full control (subject to local planning regulations).
5. Do I need permission to sell or sublet the property?
Leasehold properties may include clauses requiring you to inform the freeholder or management company if you plan to sell or sublet. As the owner of a freehold property, you have complete autonomy to sell or sublet without needing permission.
Freehold meaning
Freehold ownership means that you own both the property and the land it stands on indefinitely. This is the most comprehensive form of property ownership in the UK, giving you full control over how the property is managed, used, or sold.
Key features of freehold properties
Complete ownership: You own the property and the land outright.
No lease restrictions: There are no external conditions imposed by a freeholder or landlord.
No additional charges: Unlike leasehold properties, freeholds don’t require ground rent or service charges.
Responsibility for maintenance: As the freeholder, you’re responsible for all upkeep and repairs.
Leasehold meaning
Leasehold ownership means you own the property (usually a flat) for a set number of years, as defined in a lease agreement. The land it’s built on remains under the ownership of the freeholder, who grants you the lease. You can learn more in our full guide to freehold vs leasehold properties.
Key features of leasehold properties
Fixed ownership term: Lease lengths vary, typically from 99 to 999 years. Once the lease expires, ownership reverts to the freeholder unless extended.
Ongoing costs: Leaseholders often pay ground rent, service charges, and fees for maintenance of shared areas.
Restrictions: Lease agreements often include rules, such as restrictions on renovations or subletting.
Shared responsibility: Maintenance of communal spaces, like stairwells or gardens, is usually overseen by the freeholder or a management company, funded by leaseholder contributions.
Are all flats leasehold?
While most flats in the UK are leasehold, this isn’t always the case. There are rare occasions where flats can be sold as freehold properties, though this can create complications, especially in managing shared areas. If you’re buying a flat, it’s safe to assume it’s leasehold unless specified otherwise. Always check the property title to confirm.
What happens when my lease ends?
The length of your lease is a crucial factor in leasehold ownership. But what happens when it runs out? Typically, you'll have three main options:
Let ownership revert to the freeholder: When a lease expires, ownership of the property returns to the freeholder unless the lease is extended or the property is purchased outright.
Extend the lease: Leaseholders have the legal right to extend their lease under the Leasehold Reform Act 1993, provided they’ve owned the property for at least two years. Extending a lease adds 90 years to the remaining term and reduces ground rent to a nominal amount - an experienced lease extension solicitor can guide you through the process.
Buy the Freehold: In some cases, leaseholders can collectively purchase the freehold of their building, gaining full ownership. This process, known as enfranchisement, can eliminate lease-related concerns.
💡Editor's insight
"In my experience, most new buyers don't realise that if a lease falls below 80 years, the property may lose value and become harder to sell or remortgage. Extending short leases can be expensive due to the 'marriage value', which compensates the freeholder for the increased property value after the extension."
Conclusion
Determining whether your property is freehold or leasehold is vital for understanding your rights, responsibilities, and long-term costs. In general, the best option is usually to use the Land Registry or contact your property solicitor to check whether your property is freehold or leasehold.
By understanding these differences and checking the details of your ownership, you can ensure that your property aligns with your financial and lifestyle goals.
References
Leasehold property from Gov.UK
How to lease from Gov.UK