Owning the freehold means that you own the land and the building on the land.
If you own a leasehold property the land is owned by the freeholder known as the landlord and the leaseholder, the tenant, owns the property the term of the lease. When if the lease expires, the property returned back to the ownership of the landlord.
Leasehold properties are common and are very useful when you need to have rules in place regarding the management of common areas, say a block of flats, as the leaseholders will each own their flat but the landlord will continue to own the structure and the common parts such as the staircases, the gardens, parking areas etc and each of the leaseholders will generally be required to pay towards the upkeep of such.
If you are planning to buy or sell a leasehold property please contact our specialist leasehold team as they would be happy to provide you with a fixed fee quote.