What is a Freehold property
Freehold means that you own the property AND the land that the property is built on. If the flat is freehold that means that you, together with the other residents within the building or estate own the land too. In general, most flats in the United Kingdom are leasehold and most houses are freehold.
Leasehold means that you own the property but you do not own the building or the land that the building is built on. Once a Lease contract is signed between a Leaseholder and the Freeholder (Landlord), it gives the Leaseholder ownership of the property for a fixed amount of time (but not the land that the building is built on). The Lease will outline the obligations of both the Leaseholder and the Freeholder and both parties should pay notice to the contents of this Lease. If the property is leasehold, you can apply to purchase the freehold of your flat together with the other residents.
Your details will appear on the Land Registry Deeds together with all the other freeholders but it may be listed in a company name (if that is how all the freeholders list themselves as company or shareholders). A lease will be in existence as the property will still be leasehold but you will be the leaseholder and the freeholder. You will still need to check the lease length as it will still need to be extended.
You can ask the landlord to sell you the freehold at any time, there are different legal steps and rules depending on whether your home is a flat – you’ll need to buy a share of the freehold of a house – you may have the right to buy the freehold.
We hope you found our what is a freehold property guide useful.