What is leasehold?
Leasehold means you own the right to occupy a property for a fixed number of years under a lease, while someone else owns the freehold. Most flats in England and Wales are leasehold, and the value falls as the remaining term shortens.
Leaseholders typically pay ground rent and service charges, and are bound by the covenants in the lease. Disputes over service charges are among the most common property complaints there are.
Term length drives value. Once a lease drops below around 80 years it becomes materially harder and more expensive to extend, and lenders become reluctant below roughly 70 years remaining. Qualifying leaseholders have statutory rights to extend the lease or to buy the freehold collectively.
This area is under active reform, with changes phasing in over several years affecting extension terms, ground rents and the route to commonhold. Any figure or right here should be checked against the current position rather than assumed.