If you’ve had experience browsing the property market before, you may have come across leasehold flats that offer a ‘share of freehold’.
It’s a term that causes some confusion, which is why we’ve explained what it means below, as well as the pros and cons.
What is the difference between leasehold and freehold?
If you own a home freehold, you own the building and the land that it stands on until the day that you sell it to someone else.
With leasehold, you own the property in that you have the right to occupy a home for a fixed period of time, but not the building itself. It is mostly flats that are leasehold, but houses can sometimes be leasehold, too.
Are there service charges involved?
In recent years the option to become a share of freehold owner has become easier. This allows you to own your flat outright, although it works differently to owning a house freehold.
But leaseholders can be prey to landlords who may demand exorbitant management fees, charge for building insurance at vastly inflated rates and threaten to evict anyone who refuses to pay up.
Landlords can also stop leaseholders selling their flats.
Finder survey: Would you sell your property cheaply, or give it, to family members when you retire or die?
Response | Yorkshire and the Humber | West Midlands | Wales | South West | South East | Scotland | Northern Ireland | North West | North East | Greater London | East of England | East Midlands |
---|---|---|---|---|---|---|---|---|---|---|---|---|
Yes | 16.47% | 21.74% | 25.76% | 20.29% | 20.53% | 21.05% | 12.5% | 16.53% | 26.19% | 20.37% | 19.54% | 18.18% |
No | 11.76% | 11.3% | 12.12% | 13.04% | 9.93% | 7.89% | 8.33% | 10.74% | 14.29% | 12.04% | 14.94% | 12.5% |
Not sure | 10.59% | 8.7% | 12.12% | 7.25% | 11.92% | 7.89% | 4.17% | 9.92% | 2.38% | 3.7% | 10.34% | 9.09% |
I don't have children/family members | 7.06% | 7.83% | 4.55% | 7.25% | 5.96% | 3.95% | 12.5% | 6.61% | 9.52% | 11.11% | 2.3% | 4.55% |
I already retired | 5.88% | 3.48% | 4.55% | 13.04% | 1.32% | 10.53% | 12.5% | 4.13% | 2.38% | 1.85% | 6.9% | 4.55% |
More guides on Finder
-
First-time buyer statistics UK: 2024
We look at the latest first-time buyer statistics to see how difficult it is to get your foot on the property ladder in the UK.
-
Mortgage statistics 2024: What’s the average UK mortgage?
From the average mortgage payment and debt to how many outstanding mortgages there are, we explore the latest mortgage statistics in the UK.
-
How much would I pay on a million pound mortgage?
A breakdown of what you might pay monthly over the life of a £1,000,000 mortgage.
-
How much would I pay on a £450,000 mortgage?
A breakdown of what you might pay monthly over the life of a £450,000 mortgage.
-
How much would I pay on a £400,000 mortgage?
A breakdown of what you might pay monthly over the life of a £400,000 mortgage.
-
How much would I pay on a £100,000 mortgage?
A breakdown of what you might pay monthly over the life of a £100,000 mortgage.
-
How much would I pay on a £250,000 mortgage?
A breakdown of what you might pay monthly over the life of a £250,000 mortgage.
-
Compare the best 10-year fixed rate mortgages
Fix your mortgage for 10 years and shield yourself from future interest rate hikes. Compare now to find the right mortgage for you.
-
Compare the best 3-year fixed rate mortgages UK 2024
A fixed rate mortgage can offer you stability and peace of mind. Find out if a three year fixed rate mortgage is right for you.
-
5-year fixed rate and tracker mortgages
A 5-year fixed rate mortgage will see your repayments remain stable for the 5-year term. Find out more in our in-depth guide.