If you’re buying a home in the UK, one of the first decisions you’ll need to understand isn’t just location or price—it’s whether the property is freehold or leasehold.
Whether you’re purchasing a flat in Gillingham or a detached house in the countryside, knowing the difference between freehold and leasehold can save you from future headaches. So let’s break it down—without the jargon—and explore what each option really means for you as a homeowner.
What is Freehold?
When you buy a freehold property, you own both the building and the land it stands on, indefinitely. It’s the most complete form of property ownership in the UK. You don’t need to worry about leases running out, ground rent, or dealing with a freeholder. Essentially, you’re in full control.
Freehold homes are usually houses, and owning one means you’re responsible for everything—repairs, maintenance, and insurance. For many, this sense of independence is a major plus.
From my experience, freehold is often what buyers instinctively prefer—especially those looking for a long-term family home. But while it’s straightforward, it doesn’t mean it’s always the better option for everyone.
What is Leasehold?
Leasehold means you’re buying the right to live in the property for a fixed number of years—typically between 99 and 999. However, you don’t own the land it’s built on. That belongs to the freeholder, also known as the landlord.
Leasehold properties are most commonly flats or apartments, but some newer-build houses have also been sold as leasehold in recent years (a practice that’s now being phased out after government scrutiny).
As a leaseholder, you usually pay:
- Ground rent (though this is being scrapped on new leases)
- Service charges for maintenance of communal areas
- A management fee to the freeholder or managing agent
You may also need permission (and to pay a fee) if you want to make significant alterations to the property.
Pros and Cons of Freehold and Leasehold
To help make things clearer, here’s a quick rundown of the key differences from a practical, real-world point of view:
Freehold – Pros:
- You own the land and property outright
- No ground rent or service charges
- Greater freedom to make changes to your home
- Generally more attractive to future buyers
Freehold – Cons:
- Full responsibility for repairs and upkeep
- Can be more expensive upfront
- You deal with all building maintenance yourself (no help from a managing agent)
Leasehold – Pros:
- Often cheaper to buy than freehold, especially for flats
- Building maintenance is handled by the freeholder (shared responsibility)
- Suitable for first-time buyers looking for manageable costs
Leasehold – Cons:
- Ongoing costs: ground rent, service charges, etc.
- Leases can expire, and extending them can be costly
- Restrictions on what you can do to the property
- Resale can be harder if the lease term is low (under 80 years)
From a local point of view, many estate agents in Gillingham have noticed buyers becoming far more cautious about leasehold properties. That’s largely due to recent publicity around high service charges and poor management from some freeholders.
What About Lease Extensions?
If you’re considering buying a leasehold property, always check how many years are left on the lease. Once it drops below 80 years, the cost to extend it jumps significantly, and the property’s value may also fall.
Generally, lenders don’t like to offer mortgages on leases with less than 70 years remaining, so it’s a crucial detail. The good news is, under UK law, most leaseholders have the right to extend their lease after owning the property for two years—but it can cost thousands.
If you’re unsure about lease terms, a good solicitor or experienced estate agent in Gillingham can help clarify things before you commit.
Why Does This Matter to You?
This isn’t just about legal technicalities—it affects your day-to-day experience as a homeowner. Buying a leasehold flat with a short lease and high service charges could mean you’re paying more than you expect every month, even if the mortgage is manageable. On the other hand, buying a freehold property might mean a big garden and more privacy, but with no one else to help when the roof needs replacing.
If you’re buying to live in the property long-term, many people prefer the security of freehold. But if you’re buying a flat in a town centre or close to the station for commuting—Gillingham is a great example—leasehold may be your only real option.
Final Thoughts from an Experienced Estate Agent
Having worked in property for two decades, I’ve helped hundreds of buyers navigate these choices. And the one thing I always say is this: understand what you’re buying before you sign anything.
Neither freehold nor leasehold is inherently bad—it depends on your budget, lifestyle, and long-term plans. But the worst thing you can do is buy a leasehold flat thinking you’re getting full ownership, only to be hit later by unexpected costs or restrictions.
If you’re unsure, speak to your solicitor and work with local professionals who know the area inside out. Estate agents in Gillingham, for example, can tell you which developments have high service charges, how long leases typically run in the area, and whether you’re getting a fair deal.
Buying a home is a big step—so take your time, ask questions, and make sure the structure of ownership suits your goals.
