legal
Leasehold
Leasehold means you own a property for a fixed period under a lease, a legal agreement with the landlord, who is often called the freeholder. When the lease ends, ownership returns to the landlord.
In simple terms
With leasehold you own the home for a set number of years, not forever. Most flats are leasehold, so the lease terms and charges matter.
Example
A buyer is looking at a flat with 82 years left on its lease. Ground rent is payable and the service charge is billed regularly. The buyer's solicitor points out that the lease is close to the 80 year mark that buyers and lenders watch, and asks for advice on extending it before exchange.
If you're buying
GOV.UK says most flats are leasehold, and houses are usually leasehold only when bought through a shared ownership scheme. The lease sets how many years you own the property and what you must pay and do. One guide says a lease should generally be at least 80 years long at purchase, as shorter terms can reduce value and make mortgages harder to get. Leaseholders may pay ground rent and a service charge, and GOV.UK says you have the right to be consulted if you would pay more than 250 pounds for planned work or 100 pounds a year for work or services lasting over 12 months. Ask for the lease, ground rent history, service charge accounts and building insurance details before exchange. Lease law is changing, so ask your solicitor which rules apply to your lease on the date you buy. (Sources read 30 October 2026: GOV.UK leasehold property; GOV.UK service charges and other expenses; Netlawman leasehold flats guide.)
If you're selling
Provide the lease, the last three years of service charge accounts, ground rent receipts and the buildings insurance schedule early. Short leases are harder to sell and lenders may refuse them, so speak to your solicitor about extension options before listing. Missing documents from the managing agent are a common cause of delay, so request the management pack as soon as you decide to sell.