Leasehold Vs Freehold Before purchasing a residential or commercial property in the UK, comprehending the kind of residential or commercial property ownership - whether it's freehold or leasehold - is essential. These terms might sound like legal lingo, but they can affect your duties, expenses and long-lasting strategies. In this guide, we'll look into the basics of freehold and leasehold residential or commercial properties, so you do not have to. We'll explore everything from what they imply, their advantages to how they vary in terms of costs, resale worth and legalities. What is a freehold? In basic terms, if you own a residential or commercial property on a freehold basis, you own the building and the land it rests on. There's no time at all limitation on your ownership, and it's all yours. Responsibilities of a freeholder Being a freeholder features exciting benefits! You're basically the captain of your residential or commercial property ship which suggests you're responsible for the maintenance of the residential or commercial property and the land. You likewise have the flexibility to make upgrades to your pad without requiring authorization from a property owner. It's your area to shine! What is a leasehold? Having a leasehold indicates you own the residential or commercial property but not the land it's constructed on. You have a lease with the freeholder (typically a 'proprietor') for a variety of years, years or even centuries. The length of the lease is necessary, as it can affect your capability to sell the residential or commercial property in the future. Responsibilities of a leaseholder As a leaseholder, you may have to pay ground rent to the freeholder, in addition to other charges like service charge for upkeep of typical areas. You might be limited in what changes you can make to your home.