If you’re buying property in South West London, especially a flat or maisonette, you will usually do so on a leasehold basis. To anyone new to house hunting, the differences between buying leasehold v freehold, might seem confusing. But whether a property is freehold or leasehold is one of the first questions you should ask your estate agent before booking a viewing. We look at the pros and cons of these two types of tenure and explain more about extending the lease or buying a freehold, if you need to do so.
When you buy freehold, you are buying both the property and the land which it is built on. You own the home in its entirety with no additional charges or ground rent to pay and no landlord to deal with. However, you are also responsible for all repairs and maintenance including to the structure of the building. Traditionally most houses were sold as freehold. More recently, an increase in new-build leasehold houses, with escalating ground rents led to government reforms of the system.
Buying leasehold means you own the property’s internal space, fittings, floor and walls, but not the land it sits on or the exterior of the building. Leasehold gives you the right to occupy the property for number of years set out the lease. There may also be conditions to the lease – no pets, without consent of the freeholder (also known as the landlord) for example. You may need to apply to the landlord if you want to carry out certain renovations to your property.
If you live in a leasehold flat, you are likely to pay service charges for the upkeep of the building. In return, the freeholder should maintain and repair the structure as well as communal areas and grounds. You may also see other charges including energy bills for communal areas and a sinking fund for unexpected maintenance work in future. Leasehold flats and houses may also come with an annual ground rent. How important is the length of a lease? The length of a lease is a key thing to check before viewing a home. As properties age and pass between owners, the lease length will fall, eventually reverting to the freeholder once it runs out. A flat with a short lease of less than 80 years remaining will be difficult to mortgage and to sell on.
If your lease has less than 90 years left, you should look at extending it. By law, leaseholders are entitled to a 90-year extension at a fair market price. The old rule requiring two years of ownership before you could claim was removed in early 2025, so you can start the process as soon as you complete. If you want to extend your lease, you should find a solicitor with experience of leasehold enfranchisement and a surveyor, to value the lease extension (called the premium). Further reform is on the way. The Leasehold and Freehold Reform Act 2024 provides for a standard 990-year extension and the abolition of marriage value, but those provisions are not yet in force, so the current rules apply to any extension you start today. Can I buy the freehold of my leasehold property? If you live in a leasehold block, you can join with your neighbouring leaseholders to buy a share of the freehold. This is known as collective enfranchisement. At least 50% of leaseholders in your block must agree to take part. Ideally, your lease should have 85 years or more to run – when the time on your lease falls to 80 years, it will be more expensive to extend the lease and buy the freehold. To buy the freehold, you and the other leaseholders will have to serve what is called a Section 13 Notice on the freeholder.
This will vary depending on factors such as the length of the lease. The cost will be made up of your share of the freehold price (the premium) and the leaseholders’ and freeholder’s legal and valuation costs. You will also need to pay stamp duty, if the purchase price is over £125,000.
Buying a share of the freehold means you can extend your lease for up to 990 years. Once you jointly own the freehold, together you can set ground rents, and choose your own buildings insurance and property management services, putting you more in control of your costs. Where leasehold reform has actually got to. The Leasehold and Freehold Reform Act 2024 is law, but most of it has still not been brought into force. The two-year ownership rule went in early 2025 and the Right to Manage rules were widened in March 2025. The changes leaseholders ask about most, the abolition of marriage value, the new valuation basis and the standard 990-year extension, are still awaiting commencement, with the government consulting on valuation rates into October 2026. A separate Leasehold and Commonhold Reform Bill, published in draft in January 2026, would go further and make commonhold the default for new flats, but it is not yet law. In practice, if your lease is heading towards 80 years, do not wait for reform to make it cheaper. Marriage value still applies today.
Commonhold is an alternative to the traditional system for managing blocks of flats. Together a property’s leaseholders can set up a commonhold association, which owns the land, building and communal areas and is responsible for the management, maintenance and repairs, with no time limit. If you are looking to buy in South West London, we can advise you about all aspects of your property wishlist – including leasehold v freehold. Call us today to talk about our current range of properties.