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Freehold Property – Definition, Overview & FAQ

What is a freehold property?

Definition: A freehold property is a type of real estate ownership where the owner has complete and perpetual ownership of the property and the land on which it stands.

This means that the owner has the right to use the land for any purpose, in accordance with local regulations, without paying ground rent or leasehold charges.

Key characteristics of freehold property include:

  • Permanent Ownership: The owner has the property indefinitely. Unlike leasehold property, there is no expiration date on their rights to the property.
  •  No Ground Rent: Unlike leasehold, no rent is payable to a landlord or superior owner.
  •  Control over the Property: The owner has more control over the property, including making alterations or demolitions, subject to planning permissions and regulations.
  •  Responsibility for Maintenance: The owner is responsible for all property and land maintenance and repairs.
  •  Inheritance: The property can be passed on to heirs or sold without restrictions imposed by a landlord or superior leaseholder.

Freehold ownership is often preferred for residential property because it provides more control and permanence than leasehold ownership, where the property is owned for a fixed term and subject to conditions set by a landlord.

Freehold vs. leasehold

Freehold and leasehold are two primary forms of property ownership, each with distinct features and implications.


  • Ownership: The owner has complete ownership of both the building and the land it stands on.
  •  Duration: Ownership is perpetual; there’s no time limit.
  •  Control: The owner has full control over the property, subject to legal and planning restrictions.
  •  Costs: No ground rent or service charges to a landlord. The owner is responsible for all maintenance.
  •  Selling and Inheritance: Easier to sell, can be inherited with fewer restrictions.
  • Value: Generally retains value better due to the lack of restrictions and perpetual ownership.


  •  Ownership: The owner has rights to the building but not the land it stands on, which remains with the freeholder.
  •  Duration: Ownership is for a fixed term (often decades or centuries), after which it reverts to the freeholder unless the lease is extended.
  •  Control: Use of the property is subject to the lease agreement. Major alterations often require freeholder’s consent.
  •  Costs: May include ground rent, service charges, and fees for changes or lease extensions.
  • Selling and Inheritance: Selling can be more complex, especially with a short lease. Inheritance follows the lease terms.
  •  Value: Can depreciate as the lease shortens; extending leases can be costly.

Benefits of having a freehold

  • Full Ownership: You have complete control over the land and the building, providing a greater sense of security and permanence.
  • No Lease Expiry: There is no lease term, so you don’t have to worry about the lease running out, which can be an issue with leasehold properties.
  • No Ground Rent or Service Charges: Unlike leaseholds, you don’t have to pay ground rent to a landlord or deal with fluctuating service charges.
  • Fewer Restrictions: You have more freedom to modify, extend, or renovate your property (subject to planning permissions), without needing approval from a landlord.
  • Increased Investment Value: Freehold properties often have better investment value as they don’t lose value due to a decreasing lease term, which is a common issue with leaseholds.
  • Simpler Selling Process: Selling a freehold property is typically simpler and more attractive to buyers compared to selling a leasehold, especially one with a short lease remaining.
  • Legacy and Inheritance: A freehold property can be passed down to heirs without the complications of lease renewals or permissions from a landlord.

Disadvantages of owning a freehold property

  •  Maintenance and Repair Responsibilities: As the owner, you are solely responsible for all maintenance, repairs, and renovations. This can be financially and time-consuming, especially with older properties.
  • Higher Initial Cost: Freehold properties often have a higher purchase price compared to leasehold properties, which can be a barrier for some buyers.
  • Risk of Depreciation: While generally a stable investment, the value of a freehold property can still depreciate due to market conditions, location, or neglect.
  • Legal Obligations: You are responsible for ensuring the property adheres to all local planning and building regulations, which can be complex and costly to manage.
  • Insurance Costs: You need to cover the entire property with insurance, including building and land, which can be more expensive than insurance for a leasehold property.
  • Potential for Disputes: There can be disputes with neighbors or local authorities over boundary lines, planning permissions, or property changes.
  • Less Flexibility in Moving: Because of the higher investment and responsibility involved, it might be harder to relocate quickly compared to renting or leasehold living.

Freehold property rights of the owners

As a freehold property owner, you have rights that provide control and autonomy over your property, adhering to UK laws and local planning regulations. These rights include:

  • Exclusive Ownership: You have complete ownership of both the building and the land it stands on. This ownership is perpetual and does not expire.
  • Right to Occupy and Use: You have the right to live in, rent out, or otherwise use the property as you see fit, within the bounds of local laws and regulations.
  • Control Over Alterations: You can make alterations, improvements, or extensions to the property, subject to obtaining any necessary planning permissions and building regulations approval.
  • Freedom from Ground Rent: Unlike leasehold properties, you are not required to pay ground rent to a superior landlord.
  • Right to Sell or Transfer Ownership: You can sell the property or transfer ownership without the need for permission from a landlord, which is often a restriction in leasehold properties.
  • Inheritance Rights: You have the right to leave the property to your heirs, ensuring that the property can remain in your family or be passed on according to your wishes.


Is freehold property an asset?

Yes, a freehold property is considered an asset. It’s a tangible asset with potential to appreciate in value over time and can provide stable, long-term investment returns.

Can the government take back freehold land?

In some cases, the government can take back freehold land through a legal process called eminent domain or compulsory purchase, usually for public use or development, but fair compensation is typically provided.

What is freehold ownership?

Freehold ownership means owning the property and the land it stands on outright, with no time limit on the length of ownership. It grants the owner full control over the property, subject to legal regulations.

How to convert leasehold property to freehold?

To convert a leasehold property to freehold, you need to approach the freeholder to negotiate a purchase price. The process may involve legal formalities, premium payment, and administrative fees. Legal advice is often recommended.

What is the difference between freehold and leasehold property?

Freehold ownership means owning the property and the land indefinitely, while leasehold means owning the property for a set period but not the land. Freeholders have more control and fewer ongoing costs, whereas leaseholders may face ground rent and other restrictions.