When purchasing leasehold property, you are purchasing an “interest” from the freeholder of a specific part of the building or land they own, for a set period of time. This provides you with the right to occupy the property for a number of years, and the length of leases can vary. The length of the lease for a residential property typically varies from 99 to 999 years, and everything in between.  This compares to freehold property where you buy the land and building in perpetuity (forever – or at least until you sell it!).

Unlike freehold property, you will not own the land on which the property is built on. Leasehold is a common way of owning flats and maisonettes, and whilst you own your property in the building you do not own the land it sits on. However you contribute towards the maintenance and upkeep of the shared parts of the building you do not own but use.  

Leashold properties are common in large cities where space is at a premium and building upwards is easier and can be a good way for first time buyers to get a foot on the housing ladder, or to get into property investment. That being said, there can be a number of restrictions on the use of the property contained within the lease which willvary from property to property. 

Look out for our future blog where we will consider the pros and cons of leasehold property.

If you are looking to buy or sell property, please contact a member of our property team on 01494 521301.