Question 1

What is the difference between leasehold and freehold?

Accepted Answer

A freehold owner owns the property and the land it stands on outright, with no time limit. A leasehold owner owns the right to occupy the property for a fixed term (typically 99 to 999 years) but does not own the land — the freeholder retains ownership of that. When you buy a flat in the UK, it is almost always leasehold. A lease below 80 years becomes difficult to mortgage, and extending a lease becomes significantly more expensive once it drops below this level.

Question 2

What is ground rent and are landlords still allowed to charge it?

Accepted Answer

Ground rent is an annual charge paid by a leasehold owner to the freeholder. The Leasehold Reform (Ground Rent) Act 2022 banned ground rent above a peppercorn on new residential leases granted after 30 June 2022. Existing leases with ground rent clauses are not affected. Problematic ground rent clauses — particularly doubling clauses where rent doubled every 10 to 25 years — can make properties difficult to mortgage and sell.

Question 3

What are service charges and can I challenge them?

Accepted Answer

Service charges are fees paid by leasehold property owners to cover shared costs: building insurance, communal maintenance, lift servicing, and building management. They must be reasonably incurred under the Landlord and Tenant Act 1985. If you believe charges are unreasonable, you can apply to the First-tier Tribunal (Property Chamber). Freeholders must consult leaseholders before spending more than £250 on any single item of qualifying works — this is the Section 20 consultation requirement.

Question 4

What is a boundary dispute and how is it resolved?

Accepted Answer

Boundary disputes arise when neighbours disagree about where the legal boundary between properties lies. The starting point is the Land Registry title plan, but title plans are typically at 1:1250 scale and not precise enough to resolve disputes to the centimetre. Disputes are often resolved through mediation or a RICS-accredited surveyor's expert determination. Court proceedings are the last resort — they are expensive, slow, and the average contested boundary dispute costs each party £20,000 to £50,000 in legal fees.

Question 5

How do I extend my lease and how much does it cost?

Accepted Answer

Qualifying leaseholders (who have owned the property for at least 2 years) have a statutory right to extend their lease by 90 years at a peppercorn ground rent. The cost depends on the unexpired lease term and property value. Extending a lease with 80 years remaining on a £300,000 flat might cost £10,000 to £20,000 in premium plus legal and surveyor fees of £3,000 to £5,000. The longer you leave it, the more expensive extension becomes — particularly below 80 years, where marriage value is added to the calculation.

Question 6

What is the difference between freehold and leasehold property in the UK?

Accepted Answer

Freehold means you own the property and the land it stands on outright, with no expiry date and typically no ground rent or service charges from a landlord. Leasehold means you own the right to occupy the property for a fixed term — often 99, 125, or 999 years — while the freeholder owns the land. Leaseholders typically pay ground rent (now zero for new leases under the Leasehold Reform (Ground Rent) Act 2022) and service charges for the upkeep of communal areas. Leases below 80 years lose value rapidly and are difficult to mortgage; extending a lease below 80 years triggers marriage value costs. Most flats are sold leasehold. Most houses are freehold, though shared ownership and some estates are leasehold. Always check the lease length and annual charges before buying a leasehold property.

Question 7

What is the difference between freehold and leasehold property in the UK?

Accepted Answer

Freehold means you own the property and the land it stands on outright, with no expiry date and typically no ground rent or service charges from a landlord. Leasehold means you own the right to occupy the property for a fixed term — often 99, 125, or 999 years — while the freeholder owns the land. Leaseholders typically pay ground rent (now zero for new leases under the Leasehold Reform (Ground Rent) Act 2022) and service charges for the upkeep of communal areas. Leases below 80 years lose value rapidly and are difficult to mortgage; extending a lease below 80 years triggers marriage value costs. Most flats are sold leasehold. Most houses are freehold, though shared ownership and some estates are leasehold. Always check the lease length and annual charges before buying a leasehold property.

Property Ownership UK 2026 — Leasehold, Freehold, Ground Rent and Service Charges

Leasehold vs Freehold — The Financial Differences

Ground Rent — The 2022 Reform and What It Means

Service Charges — What Is Reasonable

Lease Extension — When to Act

Worked Example: The 80-Year Threshold

Boundary Disputes — Practical Guidance

What This Cluster Covers

Guides & Articles

Council Tax in Shared Houses — Who Pays and How Much?

Ground Rent and Service Charges Explained UK

Leasehold vs Freehold Explained UK — What's the Difference?

Service Charge Guide for Flats — What You Need to Know

Sources

Issue	Freehold	Leasehold
You own the land	Yes	No
Time limit on ownership	No	Yes (lease length)
Annual ground rent	No	Possibly (on leases before June 2022)
Service charges	No	Usually yes (for flats)
Need consent for alterations	No	Usually yes
Lease extension required	Not applicable	Yes, if lease falls below 80 years
Risk at end of lease	None	Property reverts to freeholder

Lease remaining	Action
100+ years	Monitor; no urgent action needed
85 to 99 years	Start planning; get a valuation
80 to 85 years	Act now — serve notice before falling below 80 years
Under 80 years	Extension is expensive; act urgently
Under 70 years	Many lenders refuse to mortgage; sale very difficult