Understanding property tenure is key to making smart buying decisions. This guide breaks down the main types of tenure in the UK, how they affect ownership, and what to watch out for when buying.
Sep 30, 2025
When you buy a property in the UK, the tenure determines how you own and use it. It affects your legal rights, responsibilities, and what happens in the future if you sell or pass the property on. Many buyers skim over tenure details, but that’s a mistake. Picking the wrong tenure without knowing what it means can lead to unexpected costs or legal headaches later.
You own the property and the land it’s built on outright. This is usually the preferred option for houses. You’re responsible for maintenance, but there are no ground rents or service charges. Freehold homes tend to hold value well and give you more control.
Many movers prefer freeholds because they offer long-term stability. If you’re thinking about selling and buying again, our Moving Home service can guide you through the mortgage process clearly and efficiently.
“Understanding tenure isn’t just a legal box to tick, it’s what keeps buyers from walking into avoidable problems later.” - Will Sharman
You own the property for a set period, but not the land it sits on. The land is owned by a freeholder, usually a landlord or management company. Leaseholds are common for flats and some new-build houses. Key points:
Leasehold buyers often underestimate the impact of lease length. Whether you’re purchasing your first flat or refinancing, our Remortgage and First-Time Buyers services can help you avoid expensive surprises.
This is where you own the leasehold flat, but also own a share of the freehold for the building, usually through a limited company with other flat owners. It gives more control over maintenance and costs but also comes with joint responsibilities. Buyers still need to check leases and legal agreements carefully.
Commonhold was introduced in 2002 as an alternative to leasehold. You own your flat and are part of a “commonhold association” that manages shared areas. There’s no ground rent, and ownership doesn’t run out like a lease.
Commonhold hasn’t taken off widely yet, but it’s slowly growing. Some lenders are still cautious, so mortgage options can be more limited. It’s important to speak to a broker early if you’re buying a commonhold property.
You buy a percentage of the property (usually 25–75%) and pay rent on the rest. Over time, you can buy more shares, known as “staircasing”, until you own it fully.
This can be a good route onto the ladder, but it comes with extra legal complexity and sometimes higher long-term costs. For buyers considering shared ownership, our First-Time Buyers service can help explain the process clearly and find the right mortgage options.
Mortgage lenders look closely at tenure. Short leases can limit loan terms, shared ownership often needs specialist lenders, and uncommon setups like commonhold can narrow your options.
Understanding the tenure early helps avoid delays and wasted costs during conveyancing. You can use our Mortgage Calculator to get an idea of your borrowing power, or speak to our team about Remortgage and Mortgage Protection options.
Tenure might seem like a dry legal detail, but it shapes your rights, responsibilities, and future costs. Whether you’re buying your first flat or upgrading to a family home, knowing the difference between freehold, leasehold, shared ownership and others puts you in control. Speaking to a broker early can help you avoid nasty surprises later and make the buying process smoother.
“The right mortgage starts with knowing exactly what you’re buying. Tenure plays a bigger role in that than most people realise.” - Will Sharman
Freehold usually gives the most control and fewest ongoing costs, but the right choice depends on your goals and budget.
Yes, but lenders will check the lease length and conditions. Leases under 80 years can cause issues and may limit mortgage options.
In theory, yes, because you own outright and don’t pay ground rent. But commonhold is rare, and some lenders are cautious, so mortgage options can be more limited.
Often yes, through lease extension or collective enfranchisement. It can be expensive, so get legal advice first.
It can help you buy sooner, but you’ll need to factor in rent, service charges, and staircasing costs to understand the full picture.
Absolutely. Tenure affects how much they’ll lend, the mortgage term they’ll offer, and how they assess the property’s security.
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Mortgage Brokers Near Me LTD is an Appointed Representative of The Right Mortgage LTD which is authorised and regulated by the Financial Conduct Authority. The guidance and/or information contained within this website is subject to the UK regulatory regime and is therefore targeted at consumers based in the UK. The Financial Conduct Authority does not regulate Will Writing and some forms of Trusts and Buy to Lets. A fee may be charged for mortgage advice. The exact amount will depend on your circumstances.
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