Freehold is a form of property ownership where the owner holds both the building and the land it stands on outright, with no time limit. There is no lease to renew, no ground rent and no freeholder above the owner.
In one line: Freehold means owning both the property and its land outright, with no lease term or ground rent.
How freehold works
Freehold ownership continues indefinitely and passes on through sale or inheritance. Most houses in England and Wales are freehold, giving the owner full responsibility for maintenance and repairs.
A buyer purchasing a 280,000 GBP freehold house owns the structure and the plot. Unlike a leaseholder, they face no ground rent or service charge and no risk of a shrinking lease reducing the value.
Some flats are sold with a share of freehold, where leaseholders jointly own the freehold and manage the building between them.
Freehold vs leasehold
Freehold is permanent, full ownership of property and land. Leasehold is ownership for a fixed term only, with the land retained by a freeholder and ongoing charges payable.
Buying the freehold of a leasehold flat is called collective enfranchisement when done jointly by leaseholders. Because a freeholder owns the land outright, there is no lease to renew and no third party controlling alterations to the property.
Primary source: GOV.UK: Leasehold property