Leasehold
Owning a home for a fixed number of years under a lease from the freeholder. Most flats in England are leasehold.
In short: Leasehold means you own the right to live in a property for the length of the lease, often 99 or 125 years, while the freeholder owns the land and building. Leaseholders usually pay ground rent and a service charge, and must follow the lease, which may affect letting, pets and alterations.
Selling a homeMoney, tax and insurance
England. Checked against the law on 5 October 2026. Information, not legal advice.
What matters for a landlord who owns a leasehold flat:
- The lease may require the freeholder's consent to let, or limit pets or alterations. A head lease that forbids pets can be a reasonable reason to refuse a tenant's pet request.
- Service charges and ground rent are payable to the freeholder or management company.
- Lease length affects value and mortgages: a lease below about 80 years costs more to extend.
- Building safety, insurance and repairs to common parts are usually the freeholder's job, paid for through the service charge.
Material information in an advert for sale includes the tenure and the main lease facts.
Related: Freehold, Ground rent, Service charge
Where this comes from
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Related terms
Glossary
Capital gains tax 60-day report
When you sell a UK home that is not your main home and owe capital gains tax, you must report and pay it to HMRC within 60 days of completion.
Glossary
Service charge
What a leaseholder pays the freeholder or managing agent towards the costs of the building: repairs, cleaning, insurance and management of the shared parts.
Glossary
Ground rent
A yearly payment a leaseholder makes to the freeholder under the lease. For most new long residential leases since 30 June 2022 it is limited to a peppercorn (nothing).
Glossary
Council tax liability
Who must pay council tax on a home. Usually the tenant living there; the owner for an HMO, an empty home or where nobody lives there as their main home.
Glossary
Freehold
Owning a property and the land it stands on outright, with no time limit. Most houses in England are freehold.
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