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

Freehold vs leasehold: the crucial differences
wissenschaftspodcasts.de
Do you understand what is meant by a freehold or leasehold residential or commercial property? Experienced estate representative, Ian Harris assists describe the key differences.

Subscribe to our video channel

Make sure you stay up to date with our video material as it's released. By subscribing you will be informed as quickly as new videos are launched.

What does leasehold indicate?

You are buying a lease from the freeholder for the right to live in the residential or commercial property for a set variety of years. You will not technically own the or commercial property outright, the freeholder (or landlord) will continue to own the residential or commercial property and the ground it rests on. Leasehold is prevalent when buying a flat or house as it sits within a larger structure.

The number of leasehold homes has actually nevertheless grown recently, specifically with brand-new builds that are offered directly through the designer.

Recent modifications to the law

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

Find out more about what's altering for leasehold

Main point to understand that have been executed up until now are:

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

• This means that more leaseholders in mixed-use buildings can apply for the right to manage