Freehold vs Leasehold vs Commonhold: Understanding Property Ownership in the UK

2025-10-14

When buying a property in the UK, one of the first things to understand is the type of ownership. The terms freehold, leasehold, and commonhold describe how you legally own your home — and each comes with different rights, responsibilities, and costs.

What Is a Freehold Property?

Buying a freehold means you own both the building and the land it stands on outright, with no time limits. There is no landlord, and you have full control over your property.

Key features:

You are responsible for all maintenance, repairs, and insurance.
There is no ground rent or service charge.
You can make changes to your home, subject to planning permission.

Advantages:

You own your home forever.
No ongoing payments to a landlord.
Complete control over your property.

Considerations:

All costs fall to you — upkeep, repairs, and maintenance can be expensive.

Freehold ownership is most common for houses in the UK and is often preferred for its stability and simplicity.

What Is a Leasehold Property?

A leasehold means you own the property for a fixed period — often 99, 125, or even 999 years — but not the land beneath it. The land belongs to a freeholder (landlord). Leasehold is the most common form of ownership for flats and apartments in the UK.

How it works:

You pay ground rent, service charges, and maintenance fees for shared areas.
When the lease expires, ownership returns to the freeholder unless renewed.
You may need permission for renovations or subletting.

Advantages:

Usually more affordable than freehold.
Shared responsibility for communal areas.

Considerations:

Short leases (under 80 years) reduce the property’s value and mortgage options.
Service charges and fees can increase.
Extending the lease or buying the freehold can be costly.

Always check the remaining lease term before buying and review the lease agreement carefully with your solicitor.

What Is Commonhold?

Commonhold is a newer form of ownership introduced in 2002. It was created to give homeowners more control over their building and remove many of the issues caused by leasehold.

With commonhold:

You own your flat outright forever (no lease to expire).
You share ownership and management of communal areas through a Commonhold Association.
The association follows a legal document called the Commonhold Community Statement, which sets out maintenance and management rules.

Benefits:

No lease expiry or renewal costs.
No ground rent or external landlord.
Owners manage the building together, promoting fairness and transparency.

Why it’s not yet common:

According to Propertymark, early laws made it difficult to use commonhold in large or mixed-use buildings, and converting from leasehold required unanimous consent from owners and lenders.

What’s changing:

The UK government plans to make commonhold the preferred model for new flats.
Reforms will make it easier to convert from leasehold with only 50% owner consent.
The new system will better support mixed-use developments and shared ownership schemes.
Managing agents will face stricter regulation for professionalism and transparency.

These updates could make commonhold the future of property ownership in England and Wales.

What Is Share of Freehold?

Share of freehold combines aspects of both freehold and leasehold. It’s common in smaller flat buildings where the residents collectively own the freehold.

Each flat owner holds a lease on their property but also shares ownership of the building’s freehold, usually through a management company.

Benefits:

Greater control over management and maintenance.
Easier and cheaper to extend leases.
Fewer restrictions from a landlord.

Considerations:

All owners must agree on decisions about repairs or management.
Cooperation and good communication are key.

Which Ownership Type Is Best for You?

The best ownership type depends on your lifestyle and goals:

Choose freehold if you want complete ownership and control (ideal for houses).
Choose leasehold for convenience in shared buildings, but check the lease terms carefully.
Choose commonhold if you want long-term ownership with collective control.
Choose share of freehold if you want a balance of ownership and collaboration.

Before buying, seek advice from a solicitor or agent experienced in property law to fully understand your rights and obligations.

Buying Property in London?

Whether you’re buying a freehold house, a leasehold flat, or exploring the new commonhold model, Crown Home Buying & Letting can guide you through the process.

Our London property specialists will: