What are the differences between leasehold and freehold?
A lease has a limited life (from 1 to 1000 years) and on expiry may not be renewable. A freehold is unlimited in duration. A leaseholder will have to pay rent: either a nominal ground rent or a full market (“rack”) rent. Many leasehold properties also involve paying a service charge.If you own a freehold property, you are in sole control of it (subject to statutory obligations, such as those that apply to listed buildings and tenanted properties). If you are a tenant of a leasehold property, you only have a right to occupy it on the terms set out in the lease. The lease is designed to protect the landlord’s interests and will cover every aspect of your occupation. For instance – A freehold owner can (within limits) choose whether, when and how to maintain and decorate their property; a tenant will be obliged constantly to maintain the property, to redecorate at fixed intervals and often to comply with a defined colour scheme. Subject to planning permission and Building Regulations, a f
