{"id":1354,"date":"2022-07-20T11:51:09","date_gmt":"2022-07-20T10:51:09","guid":{"rendered":"https:\/\/www.firstport.co.uk\/insight\/the-differences-between-leasehold-and-freehold-property\/"},"modified":"2025-06-11T12:46:20","modified_gmt":"2025-06-11T11:46:20","slug":"the-differences-between-leasehold-and-freehold-property","status":"publish","type":"insight","link":"https:\/\/www.firstport.co.uk\/insight\/the-differences-between-leasehold-and-freehold-property\/","title":{"rendered":"The differences between leasehold and freehold property"},"content":{"rendered":"\n

It\u2019s important for property owners, and those looking to purchase a property, to know the difference between freehold and leasehold properties. Here we take a look at the key differences between them and how FirstPort<\/a> works with freeholders and leaseholders to effectively manage a development.<\/p>\n\n\n\n

What is a freehold property?<\/h2>\n\n\n\n

A freehold property is when you own the building and the land it\u2019s on. As a freeholder, you are responsible for the maintenance of the whole building, as well as the land.<\/p>\n\n\n\n

What is a leasehold property?<\/h2>\n\n\n\n

With a leasehold property, you own the property but not the building or the land it\u2019s on, and you may pay ground rent<\/a> to the freeholder (also known as the landlord). When you purchase a leasehold property, you enter a legal agreement with the landlord to own the property for a set period of time, referenced in a lease agreement. Leasehold properties are normally flats or apartments, but a house can also be leasehold.<\/p>\n\n\n\n

Owners of leasehold properties pay a service charge<\/a>, either to the freeholder directly or to the managing agent appointed to look after the building on their behalf. This fee contributes to the general maintenance and upkeep of the building and the communal areas. It’s usually paid in advance once or twice a year.<\/p>\n\n\n\n

What if leaseholders want more of a say in the running of the development they live in?<\/h2>\n\n\n\n

In some cases, leaseholders can have more of a say in how their development is run by becoming a Director of their Resident Management Company (provided an RMC has been set up by the developer) or Right to Manage Company (provided leaseholders have taken the statutory right to take over management from the freeholder).<\/p>\n\n\n\n

Resident Directors are required to meet a range of statutory requirements. Typical responsibilities include:<\/p>\n\n\n\n