What tenure means
With freehold, you own the building and the land it stands on, with no end date. With leasehold, you own the right to live there for a fixed number of years under a lease, and someone else, the freeholder, owns the building.
In England most flats are leasehold and most houses are freehold, but not all. Some houses are leasehold, especially on some new-build estates and in parts of the North West. A few flats are freehold. And with a share of freehold, the flat owners together own the freehold of their building, while each still holds a lease.
Why the prices don’t line up
Five things move a leasehold price that a freehold house doesn’t have:
- The lease runs down. Once fewer than about 80 years are left, extending the lease usually costs more, because the freeholder can claim a share of the rise in price that the extension brings (known as marriage value). Many lenders also want a minimum term left. Two flats alike in every other way can sell far apart.
- Ground rent. Older leases can carry a ground rent that rises over time. Most new long leases granted since 30 June 2022 can’t charge more than a peppercorn (since 1 April 2023 for retirement homes).
- Service charges and major works. Leaseholders pay a share of the building’s upkeep. A large bill for a roof, lifts or cladding shows up in the price.
- Who controls the building. A share of freehold usually sells differently from a lease with an outside freeholder.
- Lender rules. Some lenders lend less, or not at all, on short leases or unusual tenures, which narrows the buyers who can bid.
A lease runs down. Below about 80 years, extending usually costs more.
Plenty of term. Extending is usually simpler and cheaper.
So a leasehold flat’s price per square foot says little about a freehold house nearby, and the reverse.
Looking at a leasehold flat? Its asking can be checked using leasehold sales only. See it against the sales
Why you shouldn’t mix them
The Land Registry records whether each sale was freehold or leasehold, so you can compare like with like: leasehold flats with leasehold flats, freehold houses with freehold houses. A street’s average sale price that mixes the two describes neither.
If there are few recent sales of leasehold flats nearby, it’s better to look a little further afield, or a little further back, than to read a flat’s price against houses.
Short of sales like yours? Look further afield, not at a different kind of home.
What to check on a leasehold home
Tick them off as you go. Your conveyancer will cover each one, but asking early helps you price your offer.
The law is changing
The Leasehold and Freehold Reform Act 2024 is coming in stages. The rule that you had to own a flat for two years before extending its lease ended on 31 January 2025. Other parts, including ending marriage value and standard 990-year extensions, aren’t in force yet, and a challenge to the marriage value change is due at the Court of Appeal in 2027.
The government’s draft Commonhold and Leasehold Reform Bill, published in January 2026, would also cap ground rent on existing leases at £250 a year. It isn’t law yet. Your conveyancer can tell you where things stand on the day you buy.
Questions
Is a share of freehold the same as freehold?
No. You still hold a lease, but you and the other owners control the freehold, so you can usually extend the lease on agreed terms.
Does a short lease always mean a lower price?
Usually, once it’s below about 80 years, and more so the shorter it gets. The cost of extending, and fewer lenders, both weigh on the price.
Can I compare a leasehold flat with leasehold flats in another building?
Yes, if they’re nearby and close in age and size. Lease length and service charges still differ building to building, so check them.
Where do I find how long the lease has left?
On the Land Registry title register for the flat, which costs a few pounds online, or in the lease itself. Your conveyancer will confirm it.