Property Types Explained
Freehold, leasehold, new builds, and more explained.
Freehold vs Leasehold
With a freehold property, you own the building and the land it sits on. Most houses are freehold, though some houses, especially newer ones, are leasehold.
With leasehold, you own the property for a set period, called the lease term, but not the land. Flats are usually leasehold. You may pay ground rent and service charges to the freeholder. The law on leasehold has been changing, so ask your solicitor to check the current rules for the home you want.
💡 Tips
- •Check the remaining lease length, as under 80 years can be a problem
- •Add service charges and ground rent to your budget
- •Ask what a lease extension would cost
New Builds
New build homes usually come with a 10 year structural warranty, often from NHBC and sometimes from another provider. Check which provider covers the home and what it includes. New builds are often more energy efficient, but may carry a "new build premium" in the price.
Buying off plan can be cheaper, but you need to be comfortable buying before the property is finished.