Do you know your freehold from your leasehold?

When buying a property sometimes the jargon can make the whole process feel like you’re speaking in a foreign language.  But it’s essential that you fully understand what it is you’re actually buying to prevent stresses and strains further down the line.


It’s more than likely that if you’re buying a house it will have a freehold title.  This means that you own the land and property on it outright.  Unlike a leasehold, there is no time scale or limit to your ownership, although there may be restrictions in the form of certain covenants and obligations.


Things get a little more complex when you start to look at leasehold properties. Most apartments are leasehold, but it can also apply to houses, so please check.  The land on which your property sits will be owned by the freeholder, who will grant you an interest in said land or property for a specified time period.  The length of the lease can vary, but is normally granted for 99, 125 or 999 years.

But be warned, at the end of the term of the lease you no longer have a right to occupy the land or the property, and ownership reverts back to the freeholder.  This is why it’s essential to check the length of the lease before purchasing; the longer the term, the easier it will be to sell your property when the time comes.

If you have any questions about freehold and leasehold please come and see a member of our team at your local branch.