Leasehold: what you're really buying
You own the right to live in the property for a fixed number of years under a lease; the freeholder owns the building.
Most flats are leasehold. The lease sets the length (for example 125 or 999 years), the ground rent, the service charge rules, what you can and can't do (pets, subletting, alterations) and who repairs what.
Lease length matters. Below about 80 years, extending gets much more expensive under current law because 'marriage value' is added. Many lenders won't lend, or lend less, below about 70 to 85 years remaining.
Since 30 June 2022 most new residential leases must have a ground rent of zero (a 'peppercorn'), under the Leasehold Reform (Ground Rent) Act 2022. Older leases can still have ground rent, sometimes rising (doubling clauses are a red flag).
You pay a service charge for shared areas, buildings insurance and a reserve (sinking) fund, and can challenge unreasonable charges at the First-tier Tribunal (Property Chamber).
What to check
- How many years are left on the lease?
- Ground rent now, and does it rise (and how often)?
- Service charge for the last 3 years, the reserve fund, and any major works planned
- Any restrictions that matter to you (pets, letting, short lets)?
- Cladding or fire-safety issues (ask for the EWS1 form or building safety information if the block is over 11 metres)
Who can help
A solicitor who specialises in leasehold; the managing agent supplies the leasehold management pack.
Official sources
Checked 5 November 2026. General information for England and Wales, not legal advice.