What is a leasehold?

A brief introduction to this type of home ownership and how it may apply to householders, whether living in a house or a flat (including maisonette).

There are different tenures or categories of ownership of property in England and Wales. The most widely known is freehold ownership.

Anyone who buys a house will almost always be buying the freehold, that is they will own the property (including the land) outright. Most house owners are freehold owners.

Alternatively it is possible to buy the leasehold of a house. Such houses are mainly found in the north and the south-west of England but are also available in London and other parts of the country.

Generally for leasehold, the building and the land are owned by the freeholder (otherwise known as the landlord/lessor), who grants someone else the right to use the property for a period of time. This is done by granting a lease. The person it is granted to is called the lessee, leaseholder or the tenant.

At present anyone who buys a flat will normally be buying a leasehold interest. However,a new tenure known as commonhold was introduced in September 1994. This tenure is for interdependent properties and allows the flat (or unit) for example, to effectively be held on a freehold basis.

The way that commonhold works is fundamentally different from leasehold, therefore advice on this tenure should be sought from: Her Majesty's Court Service, Land Law Team, International and Property Branch Civil Law and Justice Division, 4th Floor, Selbourne House, 54 Victoria Street, London, SW1E 6QW.