Leasehold: Method of owning property (usually a flat) for a fixed term but not the land on which it stands.
Freehold: Outright ownership of the property and land on which it stands.
A freehold estate in land (as opposed to a leasehold) is where the owner of the land has no time limit to his period of ownership.
Is freehold or leasehold better?
Leasehold: Unlike a freeholder, as a leaseholder you do not own the land the property is built on. Houses tend to be sold as freehold properties as it’s a more clear-cut scenario, given there’s only one property on that piece of land.
Is Freehold more expensive than leasehold?
Freehold is often more expensive than leasehold at the outset. However, it’s worth doing a long term comparison, as although the freehold may cost more upon buying it, leasehold building often come with ground rents, service charges and even admin fees.
What does leasehold mean when buying a house?
Leasehold means that you own the property, but the land upon which the property is built is owned by the freeholder. This gives you the right to occupy the property for as long as the lease is valid. Freehold, on the other hand, means that you own the property and the land upon which the property stands.
What is the advantage of freehold over leasehold?
The advantages of a freehold
Freeholds are usually houses. The advantage of a freehold property is that you have complete control over it, and are not subject to any further payments, like ground rents, service charges or admin fees, which can be the case with leasehold properties.