If you own the of your home, it indicates that you own the building and the land it sits on. If your residential or commercial property is leasehold, you own the residential or commercial property however not the building or land and should pay ground lease to the freeholder.

Freehold vs leasehold: the essential differences
zillow.com
Do you comprehend what is suggested by a freehold or leasehold residential or commercial property? Experienced estate representative, Ian Harris helps explain the crucial differences.

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What does leasehold suggest?

You are purchasing a lease from the freeholder for the right to reside 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 property owner) will continue to own the residential or commercial property and the ground it rests on. Leasehold is prevalent when buying a flat or apartment or condo as it sits within a bigger structure.

The number of leasehold homes has actually however grown recently, particularly with new builds that are sold straight through the developer.

Recent changes to the law

The Leasehold and Freehold Act 2024 is now law, however specific parts of the Act are being carried out one at a time so not whatever has actually been done yet. You can see the development of the modifications here. Eventually there will be a ban on the sale of 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 know that have been implemented up until now are:

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

• This implies that more leaseholders in mixed-use structures can request the right to handle