What’s the difference between freehold and leasehold? Conveyancing and Property

Freehold is the permanent and absolute tenure of land or property with the freedom to dispose of it at will. In basic terms, you own the property and the land that it’s built on and does not have a leaseholder to whom you owe ground rent. However, it means you have the full responsibility that comes with this and must repair and maintain the property accordingly.

Leasehold, by contrast, means that you own the property and land for the length of the lease agreement. When the lease ends, ownership returns to the freeholder unless extended. With a leasehold property, you must pay ground rent and perhaps service charges to the freeholder or landlord. However, you may have fewer responsibilities concerning repair and maintenance.