Freehold vs Leasehold in the UK
Freehold means you own the property and the land it sits on indefinitely; leasehold means you own the right to occupy for the remaining lease term while a separate freeholder owns the building and land. Most UK houses are freehold, most UK flats are leasehold, and a third form — share of freehold — lets leaseholders in a block collectively own the freehold via a management company.
UK residential tenure comes in three common forms: freehold, leasehold and share of freehold. Each sets a different boundary around what you actually own, what you pay in running costs, and how the property is valued.
Freehold
You own the property and the land it sits on. No ground rent, no service charges, no freeholder. Most UK houses are freehold.
Leasehold
You own the right to occupy the property for the remaining term of a lease. A separate freeholder owns the building and land. Leaseholders may pay ground rent (rules vary by when the lease was created) and service charges where applicable. Most UK flats are leasehold.
Things commonly discussed in connection with leasehold:
- Remaining lease length.
- Ground-rent terms and review clauses.
- Service charges and reserve funds.
- The freeholder's conduct and track record.
Share of freehold
Leaseholders in a block can collectively own a share of the freehold, typically via a management company. This gives them collective control of building decisions and service charges.
How tenure affects value
- Tenure is an input into most valuation models, including Offrly's.
- Freehold and share-of-freehold flats are typically valued differently from pure-leasehold flats.
- Remaining lease length can have a meaningful effect on value for leasehold flats.
How Offrly handles tenure
Offrly's valuation takes tenure as a first-class input. Leasehold flats are modelled separately from freeholds, and remaining lease length shifts the estimate. Our AI reads each comparable's photos — the same condition signals a human valuer would weigh — and hyperlocal pricing resolves prices to the street rather than the postcode. Thirty seconds from postcode to a price bracket, free and with no sign-up.
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Disclaimer: Offrly is indicative market guidance, not a regulated valuation and not financial, tax or legal advice. For mortgage, insurance, probate or tax purposes, use a RICS-qualified surveyor and an independent qualified adviser. For leasehold-specific questions (lease extension, enfranchisement, service-charge challenges), consult a qualified conveyancer or solicitor.
Questions
What is the difference between freehold and leasehold?
Freehold means you own the property and the land it sits on. Leasehold means you own the right to occupy for the remaining lease term, while a separate freeholder owns the building and land.
What is share of freehold?
Leaseholders in a block can collectively own a share of the freehold, typically via a management company. This gives the leaseholders collective control of building decisions and service charges.
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