Leasehold or freehold? Lease length, ground rent, service charge, the 80-year rule and what the 2024 law changed when buying a flat
Published: Last checked: October 20263 min read1 like
Short answer
Leasehold means owning a property for a fixed period; most flats are leasehold. With 80 years or less left, extending costs far more and many lenders hesitate. The 2-year ownership rule went in January 2025; 990-year extensions and the ground rent cap are not yet in force.
In short
- This post is general information, not legal, financial or tax advice. It is based on GOV.UK and other official pages as they were on 18 October 2026 and applies to England; Wales, Scotland and Northern Ireland have different rules and taxes.
- According to GOV.UK you own a leasehold property only for a fixed period; the lease is the legal agreement with the landlord (freeholder). Ownership returns to the landlord when the lease ends.
- Most flats are leasehold. Houses can be leasehold too; houses bought through shared ownership are usually leasehold.
- With freehold you own the property and the land outright.
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Official sources
This answer is based on the pages below. Check the source yourself before you decide.
- GOV.UK: Leasehold property
- GOV.UK: Extending, changing or ending a lease
- GOV.UK: How to buy a home (guide, 2019)
- House of Commons Library: Leasehold reform in England and Wales, what is happening and when
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