Freehold usually means fewer moving parts, you own the building and the land, you handle maintenance, and there’s no ground rent or service charges. Leasehold means you own the property for a set number of years, and the building (and land) is owned by a freeholder, so you may pay service charges and ground rent, and you can be restricted by the lease. For mortgages, the big “gotcha” is lease length. Once a lease starts getting short (especially heading towards 80 years), it can affect value and lender options, and extending later can get expensive. Reforms are in motion in England and Wales, but you still need to buy based on today’s rules, not headlines.
Jan 26, 2026
This article is general information, not personal advice. Leasehold rules and costs can vary by building, and mortgage criteria varies by lender. Always read the lease, get proper legal advice from your conveyancer, and speak to a mortgage adviser before committing.
Freehold means you own the property and the land it’s on, with no time limit. In plain English:
Freehold is most common for houses in the UK, which is why buyers often assume freehold is “normal”.
The upside: control, simplicity, fewer ongoing admin costs.
The downside: if the boiler dies or the roof needs work, it’s on you.
Leasehold means you own the property for a fixed term, under a lease. The freeholder owns the land (and usually the building).
Leasehold is most common for flats and maisonettes, because the building structure and communal areas need managing.
With leasehold you’ll usually see:
Key point: you’re not just buying a flat, you’re buying a legal agreement that comes with running costs and restrictions.
MoneyHelper’s summary is basically spot on: freehold is ownership of property and land indefinitely, leasehold is ownership for a fixed time with the land owned by someone else.
Leasehold can come with:
Freehold is usually:
Leasehold often requires permission (and sometimes fees) to:
Freehold gives you more freedom, as long as planning/building regs are followed.
Freehold rarely causes mortgage issues.
Leasehold can cause mortgage issues when:
If you remember one thing from this blog, make it this:
Lease length can make or break your mortgage options.
Many lenders want a minimum number of years left on the lease both:
Example criteria (varies by lender): one lender states 80 years minimum at the start, and 60 years remaining at the end of the mortgage term.
So if you’re taking a 35-year mortgage, a lease with 90 years left might look fine now, but can fail criteria with certain lenders depending on the lender’s “end-of-term” rule.
You’ll hear “80 years” constantly because as leases get shorter, the property can drop in value and become harder to mortgage. Extending can also become more expensive as you approach and go below that point.
Don’t treat 80 years as a magic line that applies in every scenario, but treat it as a serious warning sign.
Lease extension rules can be technical, but here’s what matters as a buyer:
England and Wales have had major reforms progressing through law, including the Leasehold and Freehold Reform Act 2024, intended to make it cheaper and easier for leaseholders to extend leases and buy freeholds, with changes such as moving towards longer standard extensions (often referenced as 990 years for flats) and reducing certain costs in the valuation process. Some measures depend on commencement dates and further detail, so you still have to buy based on what’s live now, not what you hope will be live soon.
If you buy leasehold, service charges are not a footnote. They’re one of the biggest reasons buyers get stuck later.
Before you commit, you (and your solicitor) should look at:
If the service charge is high, unpredictable, or there’s constant conflict in the block, some lenders get cautious.
Leasehold disputes usually fall into:
There are routes like Right to Manage for qualifying buildings, and formal dispute routes, but none of this is “quick and easy”. The best move is avoiding a mess in the first place by doing proper checks before you buy.
Sometimes flats are sold as leasehold but with a share of the freehold (for example, you own a share in a company that owns the freehold).
Why buyers like it:
What people miss:
It can be a great setup, but it’s not automatically perfect.
Most people only realise leasehold can be a problem after they’ve had an offer accepted. That’s backwards.
Here’s what we do differently:
Before you get too deep, we’ll ask the questions that affect lender choice:
If a lease is borderline, you can’t just “apply anywhere and hope”.
We’ll match you with lenders whose criteria fits the remaining term and the property type, and we’ll tell you upfront if the lease length is likely to restrict options.
If you’re buying a short-lease flat, we’ll talk through real options:
And if the deal is a car crash, we’ll tell you. No point burning months on something that was never mortgageable.
If you want a blunt rule-of-thumb:
Not automatically. Plenty of leasehold flats are absolutely fine. The risk is when the lease is short, costs are unclear, or management is a mess.
It depends on the lender and your mortgage term. Some lenders want a high minimum at the start and a minimum remaining at the end of the mortgage. That’s why we check it early.
Sometimes, yes, but it can limit lender choice and may affect the property’s value. You need a plan, and your solicitor needs to confirm the legal route around lease extension.
Service charges, ground rent, buildings insurance arrangements, major works plans, and whether there’s a reserve fund.
Share of freehold can give more control, but it still requires proper management between owners. It’s not an automatic win, it depends on how the building is run.
People get obsessed with bedrooms, kitchens, and “potential”. Then they ignore the tenure and end up with a property that’s expensive to run, hard to mortgage, or awkward to sell.
If you’re buying leasehold, read the lease and treat the numbers seriously. If you’re unsure, get advice before you commit.
If you’re looking at a leasehold property and want to know whether it’s likely to be mortgageable, or whether the lease length is going to block you later, MBNM can sense-check it with you and point you in the right direction before you waste weeks.
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Read ArticleIf you’re buying, moving, or remortgaging, speak with a MBNM adviser and get clear guidance on what’s realistically available to you, before you commit to anything.
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