A leasehold property is a type of property ownership where you purchase the right to use and occupy a property for a fixed period, but you do not own the land on which it stands. Instead, the land and sometimes the building itself remain owned by a freeholder or landlord, and you pay them a ground rent or lease fee for this right
. Key points about leasehold properties:
- You own the property (such as a flat or house) for a set number of years as specified in the lease agreement, but ownership reverts to the freeholder when the lease expires
- Lease terms typically range from 90 to 999 years
- Leaseholders must often pay ground rent and service charges and may need the freeholder's permission for major alterations
- Leasehold is common for flats and apartments, and increasingly some new-build houses are sold leasehold
- The leasehold agreement outlines rights and responsibilities, including maintenance and costs
- When the lease ends, the property usually returns to the freeholder, though leases can often be extended
- Leasehold differs from freehold, where you own both the property and the land outright with no time limit
In some countries, leasehold can also apply to commercial properties, where a lessee rents a building or space for business use under a lease contract for a specified term
. In summary, a leasehold property means you have a temporary right to occupy and use a property, but not permanent ownership of the land, and you pay fees to the landowner for this right
