‘Tenure’ refers to the legal status of your ownership when you own a property in the UK. Essentially, it clarifies how you hold or possess the property.
There are two main types: freehold and leasehold.
FREEHOLD
If you have a freehold tenure, you own the property and the land it sits on outright, indefinitely. Where a property extends over another persons land, or even under it, this is called a flying freehold. Before approving a flying freehold mortgage, the lender will need to be happy with the access rights and covenants.
LEASEHOLD
On the other hand, a leasehold means you only own the property for a set period of time, with the land it sits on owned by the freeholder. At the end of the lease, ownership reverts back to the freeholder unless the lease is extended.
