Freehold vs Leasehold: What’s The Difference?

Freehold and leasehold are both ways of owning a property. If you’re considering buying a property soon, it’s important to understand what these key terms mean.

Although many homeowners are familiar with freehold and leasehold properties, we understand that some people, like first-time buyers, might not be. To find out the key differences between freehold and leasehold properties, continue reading.

What is a Freehold?

A freehold property is a type of property that’s owned outright, including the land that it’s built on. Freehold property owners are responsible for caring for both the property and the land (such as gardens and outdoor space). Most homes in the UK are freehold properties. When you’re a freehold property owner, you won’t have to:

• Deal with a landlord (as you have property ownership)
• Check when the lease is running out
• Pay ground rent or additional charges to a landlord

Freehold properties are more common when buying a house. You can find out if a property is freehold by speaking with your estate agent or checking the Land Registry website for more information.

What is Leasehold?

A leasehold property is usually owned for a set period of time in agreement with the freeholder (the main property owner). Subject to the terms of the leasehold property, you do technically own the property, but only for however long your lease agreement states – then it returns to the freeholder before finding another owner.

When you move into a leasehold property, you’ll be taking over from the previous owner. The lease does eventually come to an end, but in some cases, you’ll be able to extend it upon agreement with the property’s freeholder. Although some houses are sold as leaseholds, it’s usually flats that are owned as leaseholds.

Unlike freehold properties, you will be required to pay ground rent. However, if your communal space or garden becomes damaged, it’ll be on your landlord to cover the costs – as you don’t have ownership over these types of spaces.

The Key Differences Between Freehold and Leasehold Properties

There are several key differences between a freehold property and a leasehold property. It can be easy to confuse the two, or not know which property type is best for you.

As discussed, many homeowners are familiar with these terms, but some are not (for example, first-time buyers). We’re here to simplify the differences and help you make the best decision when it comes to moving properties.

Which is Better: Freehold or Leasehold?

So, which is better – freehold properties or leasehold properties? Freehold properties are generally the better choice between a freehold and leasehold property. Owning a freehold property comes with several benefits that leasehold properties don’t offer:

• You have complete ownership (including outdoor space)
• You can share ownership (for example, with your children)
• More flexibility
• Control over the property

However, it’s entirely up to you which property type you decide to go for. For some aspiring homeowners, the advantages of freehold properties are unmatched. But, others might not want to stay in one specific area long-term and prefer residing somewhere for shorter periods of time with the ability to move freely once the time has come to an end.

Another key factor in deciding whether to choose a freehold or leasehold property is cost. Freehold properties are typically more expensive than leaseholds, and not everyone can afford to purchase their own property right now.

Are You Looking for Your Forever Home?

If you’re looking to find your forever home, you’ll be pleased to know that we can help. At Liam Gretton, we help clients find their ideal property on the Wirral. We understand the challenges that come with property hunting – but we’re here to make the process a little more enjoyable for you. Whether you’re moving out on your own or with your family, we can find the perfect home while taking into account both your preferences and requirements.

Perhaps this is your first time purchasing a property, or you might have done it a few times before – either way, you’ll be equipped with knowledge, support, and guidance from our friendly team of estate agents. We’re trusted across the Wirral, having gotten clients’ homes off the market and helped them find their forever homes.

We’re specialists at what we do, and our great results speak for themselves. Our track record shows that our dedication, hard work, and unique methods are helping deliver great results.

Homes for Sale

We have a vast and diverse range of properties available across the Wirral Peninsula. Whether it’s a two-bedroom property for yourself and your partner, or a larger five-bedroom property for your family to reside in, we have you covered. With a wide selection of homes to consider, you can rest assured that there’s something suitable for you.

To find out more about our services and how we can help you find your dream home, please don’t hesitate to get in touch. We look forward to hearing from you soon!