By: Harley Cheetham

When it comes to owning property in the United Kingdom, there are two main types of ownership: leasehold and freehold. While both types of ownership allow you to live in and make changes to the property, there are some key differences between the two.

Freehold ownership gives you complete control over the property, including the land it sits on. As a freeholder, you have the right to live in the property for as long as you wish, and you can make changes to the property as you see fit. You also have the right to sell the property at any time and to any buyer.

Leasehold ownership, on the other hand, is a bit different. When you purchase a leasehold property, you are essentially renting the land the property sits on from the freeholder, also known as the landlord, for a set period of time, usually between 99-999 years. The leasehold agreement will set out the terms of the lease, including how long the lease lasts, how much the rent will be, and what you are allowed to do with the property.

One of the key differences between leasehold and freehold ownership is that with a leasehold property, you do not have the same rights as a freeholder. For example, you may need to seek permission from the landlord before making any changes to the property and you will need to pay an annual ground rent to the landlord. Additionally, once the leasehold agreement is up, you will not be able to continue living in the property.

Another important difference between leasehold and freehold ownership is the cost. While freehold properties can be more expensive to purchase initially, there are usually no additional costs, such as ground rent, associated with the property. Leasehold properties, on the other hand, can be less expensive to purchase initially but may have additional costs, such as ground rent, service charges and major works, such as roof repairs, that are paid by the leaseholder.

In summary, while both leasehold and freehold ownership allow you to live in and make changes to a property, there are some key differences between the two. Freehold ownership gives you complete control over the property and the land it sits on, while leasehold ownership is essentially renting the land for a set period of time. It's important to consider the rights and costs associated with each type of ownership before making a decision on which type of property to purchase. If you would like to know more about whether freehold or leasehold property ownership is right for you, contact us today.