Making Sense of Property Ownership Before You Buy or Sell

Understanding whether a property is freehold or leasehold is crucial. It affects your legal rights, financial responsibilities, and the long-term value of your investment. Recent legal reforms have made some processes simpler, but they have also added new considerations for both buyers and sellers.

ASL’s experienced conveyancing solicitors in Greater Manchester deal with these matters every day. Whether you’re buying, selling, or extending a lease, we provide clear, reliable advice to help you move forward with confidence.

In this article, we’ll clearly outline the key distinctions between freehold and leasehold property. 

What is Freehold Property?

Freehold property means you own both the building and the land it sits on indefinitely. This ownership gives you maximum control and fewer restrictions. You won’t pay ground rent or service charges, and you are entirely responsible for maintenance and repairs. Freehold ownership is typical for houses. ASL’s experienced conveyancing team in Greater Manchester regularly handles these transactions, ensuring a smooth and efficient process for buyers and sellers.

What is Leasehold Property?

Leasehold property means you have the right to occupy and use a property for a specific period, defined in a lease agreement. You don’t own the land; the freeholder (landlord) retains ownership. Lease lengths typically range from 99 to 999 years. You will likely pay annual service charges and possibly ground rent. Flats and apartments are usually leasehold. Because leasehold property can involve complex agreements and ongoing obligations, it is essential to have expert legal support. ASL’s conveyancing solicitors in Greater Manchester regularly handle leasehold property transactions, guiding clients clearly through each step and ensuring they understand all responsibilities.

What are the Key Differences?

The main difference is ownership duration and control. Freehold offers permanent ownership without annual fees or landlord consent requirements. Leasehold ownership is temporary, and leaseholders must adhere to rules set by the landlord, pay service charges, and sometimes ground rent. Leasehold properties can become problematic as leases shorten, potentially reducing property value and mortgage availability.

Freehold or Leasehold: What Buyers Need to Consider

Buyers need clarity on what they’re purchasing. A leasehold property involves ongoing fees and restrictions, directly impacting lifestyle and budgeting. It’s essential for buyers to carefully review lease terms, the remaining lease length, ground rent, and service charges. Short leases (under 80 years) can be expensive to extend and may hinder mortgage approval. In contrast, freehold properties avoid these complications and typically maintain their value better over time.

Our experienced conveyancing solicitors in Greater Manchester can guide you through these considerations, ensuring you fully understand your purchase and helping you avoid unexpected costs or issues down the line.

What Sellers Need to Know 

Sellers must provide detailed leasehold information during conveyancing. Buyers expect transparency regarding lease terms, service charges, and ground rent. Leasehold property sales often take longer due to additional paperwork and consultations with landlords. Sellers might benefit from extending short leases before selling, improving marketability and sale price.

What Recent Legal Changes Affect Leaseholds?

Significant reforms have reshaped leasehold property laws since 2024. The Leasehold and Freehold Reform Act 2024 introduced key changes:

• Ground rents on new leases are effectively abolished.
• Leaseholders now have the right to extend leases up to 990 years without ground rent.
• The expensive “marriage value” charge, previously incurred on short leases, has been abolished.
• Leaseholders no longer need to wait two years before applying to extend their leases.

These changes significantly reduce leaseholders’ long-term costs and offer more security, making leasehold property more attractive.

How ASL’s Conveyancing Solicitors Can Help

Whether you’re buying or selling a freehold or leasehold property, getting expert legal advice is essential. ASL’s experienced conveyancing solicitors in Greater Manchester can smoothly guide you through your property transaction, ensuring you fully understand the implications and helping you make informed decisions. Contact us today to get started.