Last reviewed: June 2026
TL;DR- Freehold ownership means owning the property and the land it sits on indefinitely - there is no lease to expire and no ground rent to pay.
- Most houses in England and Wales are sold freehold; most flats are leasehold.
- Freehold mortgages face fewer restrictions than leasehold mortgages as there is no lease term concern.
- Freehold flats (rare) and properties subject to a rentcharge have specific considerations that should be checked carefully.
What Is Freehold Ownership?
Freehold is the most complete form of property ownership in England and Wales. A freeholder owns the property and the land on which it stands outright, with no time limit on their ownership. There is no landlord above the freeholder, no lease to expire and no ground rent to pay. Most detached, semi-detached and terraced houses in England and Wales are sold freehold.
Freehold ownership is generally simpler than leasehold in terms of ongoing obligations - there is no service charge, no ground rent and no need to obtain landlord's consent for alterations (subject to planning and building regulations requirements). The freeholder is entirely responsible for the maintenance of the property.
Freehold vs Leasehold for Mortgage Purposes
Freehold properties are significantly easier to mortgage than equivalent leasehold properties. There is no lease term to assess, no ground rent to review and no leasehold-specific restrictions. Standard mortgage criteria apply to freehold properties. The absence of leasehold complications reduces the conveyancing complexity and cost.
Where a buyer has the choice between a freehold and a leasehold property of equivalent price and quality, the freehold is preferable from a mortgage and ownership perspective in most circumstances. In urban flat markets, freehold ownership of a flat is uncommon - most flats are leasehold by necessity of the building structure.
Freehold Flats
A freehold flat is unusual in England and Wales but does exist. The flat owner owns their unit freehold rather than leasehold. The challenge with freehold flats is the absence of a mechanism for managing and maintaining the shared parts of the building (roof, structure, external walls) because there is no landlord to manage these. Some mortgage lenders decline freehold flats entirely; others accept them where there is a robust management and maintenance arrangement in place between the freehold flat owners. Specialist legal advice is recommended for any freehold flat purchase.
Rentcharges
Some freehold properties in England - particularly in parts of Bristol, Manchester and other cities - are subject to a rentcharge: a periodic payment owed by the freehold owner to a third party who has no other ownership interest in the property. Rentcharges are distinct from ground rents (which are a feature of leasehold). The Rentcharges Act 1977 provides for the eventual extinguishment of existing rentcharges by 2037, but until then they must be paid. Lenders assess rentcharges as part of the mortgage application - very high or escalating rentcharges may affect mortgageability. Buyers should check for rentcharges on any freehold property purchase through their solicitor.
Frequently Asked Questions
Can I convert my leasehold flat to freehold?
Individual flat owners cannot typically convert a leasehold flat to freehold on its own. However, groups of leaseholders in a building can collectively purchase the freehold of the building under the right of collective enfranchisement (Leasehold Reform, Housing and Urban Development Act 1993). Once the freehold is purchased collectively, the leaseholders can choose to grant each other new, very long leases at peppercorn ground rent, effectively giving each flat the equivalent of freehold security. This process is complex and requires specialist legal advice.
Does owning freehold mean I can do whatever I want with the property?
Freehold ownership is subject to planning law, building regulations and any restrictive covenants registered on the title. Restrictive covenants - obligations imposed by a previous owner limiting how the property can be used - run with the land and bind subsequent freehold owners. Common examples include restrictions on further development, commercial use or the keeping of caravans. The solicitor should investigate restrictive covenants as part of the conveyancing process.
What is a flying freehold?
A flying freehold is a portion of a freehold property that overhangs or underlies another freehold property - for example, a room that projects over a neighbour's land. Flying freeholds create potential issues around maintenance access and rights of support that are not addressed by a landlord-tenant relationship (as there is none). Most lenders accept flying freeholds where they are minor and the solicitor confirms adequate rights are in place, but some decline properties with significant flying freehold elements.
Are there maintenance obligations on a freehold property?
Yes. As the sole owner of the property and land, the freeholder is entirely responsible for all maintenance and repair. Unlike a leasehold flat where the landlord maintains the structure and common parts (funded by service charges), the freehold owner must fund all maintenance from their own resources. Lenders assess whether the property is in adequate condition at the time of the mortgage application and require the property to be in a mortgageable state of repair.
