In England, freehold property ownership is when the owner has full and permanent ownership of both the land and any buildings on it. Essentially, the owner owns the property outright and is free to do with it as they wish, subject to any local zoning or planning laws.
Unlike leasehold ownership, which typically involves owning a property for a fixed period of time and paying rent to the freeholder, freehold ownership provides the owner with a greater degree of control over their property. The owner of a freehold property has the right to use and develop the land and buildings as they see fit, without needing to seek permission from any other party.
Freehold property ownership is often seen as more desirable than leasehold ownership, particularly for those who wish to have long-term control over their property. However, it’s worth noting that with this greater degree of control comes a greater degree of responsibility. For example, the owner of a freehold property is responsible for maintaining the property, including any buildings and any associated land, and will be responsible for any repairs or maintenance that may be required over time.
In England, houses are usually freehold with flats being mostly leasehold. Lenders are not usually keen on lending on English freehold flats, unless it is a leasehold flat with a share of freehold. In Scotland most flats are freehold.
Whilst the nature of freehold ownership seems simple and clearcut, there are some cases where the lines become blurry:
- Flying freehold – Where part of one freehold property overhangs another freehold property.
- Creeping freehold – Where part of one freehold property runs underneath a neighbouring property.
