Leasehold vs Freehold: What’s the Difference in 2025?

If you’re buying a property in 2025, you’ve probably seen the terms ‘freehold’ and ‘leasehold’ — but what do they actually mean? And how do they impact your rights, costs, and resale value? Here’s a clear breakdown of the two most common ownership types in the UK.

What Is Freehold?

Freehold means you own the property and the land it sits on outright, with no time limit. You’re responsible for all maintenance and repairs, and you don’t pay annual ground rent or service charges.

What Is Leasehold?

Leasehold means you own the property (usually a flat) for a fixed number of years — typically 99 to 999 — but not the land beneath it. A freeholder owns the land, and you’ll pay ground rent, service charges, and follow building rules.

Leasehold Pros and Cons

✅ Often cheaper upfront than freehold
❌ You’ll pay annual charges — sometimes unpredictable
❌ Restrictions on renovations, pets, subletting
❌ Lease extensions can be expensive if under 80 years

Freehold Pros and Cons

✅ Full ownership, no service or ground rent fees
✅ No lease ticking down or renewal costs
❌ More responsibility for upkeep
❌ Usually more expensive to buy

Can You Buy the Freehold Later?

Yes — leaseholders often group together to buy the freehold (called collective enfranchisement). This gives you control over building costs and avoids lease expiry problems. Property Krowd can point you toward trusted legal support for this process.

Why Leasehold Is Under Reform in 2025

Government reform is underway to cap ground rents, make lease extensions easier, and increase transparency. Many buyers in 2025 will find newer leaseholds more manageable — but always read the fine print.

Still Unsure? Property Krowd Can Help

We help buyers decode lease agreements, compare property types, and link with professionals to ensure you know what you're signing up for — especially when ownership rights and costs are involved.