A leasehold property is a type of property ownership where you own the property (such as a house or flat) for a fixed period of time, but not the land on which it stands. Instead, you lease the land from a freeholder or landlord for a set term, which can range from several decades up to 999 years. During this lease period, you have the right to occupy and use the property, but when the lease expires, ownership of the property reverts back to the freeholder unless the lease is extended or the land is purchased outright
. Key points about leasehold properties include:
- You pay ground rent or lease payments to the freeholder for the right to use the land
- You are responsible for maintaining and repairing the property, but may need the landlord's permission for major changes
- Leasehold ownership is common for flats and apartments, but some houses can also be leasehold
- Lease terms vary, often between 40 and 120 years, and lease payments can increase over time
- When the lease ends, the property reverts to the freeholder unless extended or purchased
- Leasehold differs from freehold ownership, where you own both the property and the land outright with no time limit
- Recent legal changes in some regions are improving leaseholders' rights, such as easier lease extensions and limits on costs
In summary, leasehold property means owning the building or home for a limited time under a lease agreement, while the land remains owned by someone else who leases it to you
