A share of freehold explained
Aren't sure what a share of freehold is or whether it could be a good option for you? We can help.
What's in this guide?
It’s a term that causes some confusion, which is why we’ve explained what it means below, as well as the pros and cons.
What is the difference between leasehold and freehold?
If you own a home freehold, you own the building and the land that it stands on until the day that you sell it to someone else.
With leasehold, you own the property in that you have the right to occupy a home for a fixed period of time, but not the building itself. It is mostly flats that are leasehold, but houses can sometimes be leasehold, too.
Are there service charges involved?
In recent years the option to become a share of freehold owner has become easier. This allows you to own your flat outright, although it works differently to owning a house freehold.
But leaseholders can be prey to landlords who may demand exorbitant management fees, charge for building insurance at vastly inflated rates and threaten to evict anyone who refuses to pay up.
Landlords can also stop leaseholders selling their flats.
Start your mortgage application
Ask an Expert