Buying · 6 min read
Leasehold vs freehold — what to look out for
Lease length, ground rent, service charges and when to walk away.
Freehold
You own the property and the land. Simple.
Leasehold
You own a right to occupy for a set number of years. Look for:
- **Lease length**: under 80 years is a red flag for mortgages and value.
- **Ground rent**: ideally peppercorn (i.e. £0). Escalating ground rents can make a home unsaleable.
- **Service charge**: check the last 3 years' accounts and any planned major works.
- **Cladding & building safety**: get the EWS1 form for flats.