Leasehold vs Freehold: Why Leasehold Might Be the Smarter Move

When it comes to buying a property, one of the most important decisions you’ll make is whether to go for a leasehold or freehold property. While many people assume freehold is always the better option, leasehold ownership, especially in apartment blocks, can actually offer some compelling benefits. Here's a closer look at the advantages of leasehold and the potential drawbacks of freehold that every buyer should be aware of.

What Is Freehold Ownership?

Freehold means you own both the property and the land it sits on outright which gives you full control over your home.

Benefits of Freehold:

•    Full control over your property, with no landlord or lease terms to worry about
•    Long-term security with no lease expiration or renewal costs 
•    Freedom to personalise your home as desire!

But There Are Downsides:

Owning a freehold property also comes with greater financial responsibility and higher upfront costs:

•    All maintenance is your responsibility, from roof repairs to structural issues
•    More expensive to insure and heat, particularly for larger houses
•    Gardening, driveways, and exterior upkeep fall entirely on your shoulders
•    Greater vulnerability to burglary, especially compared to secure-entry apartment buildings

What Is Leasehold Ownership?

With leasehold ownership, you own the property, but not the land it stands on. Instead, you purchase a lease that gives you the right to occupy the property for a set number of years typically between 99 and 999. 

Pros of Leasehold Apartments (Especially With Service Charges):

•    Ongoing maintenance is handled by a freeholder or managing agent you don’t need to worry maintaining the roof, structure, or communal areas of the building you live in.
•    Annual service charges help spread out maintenance costs, avoiding sudden large bills.
•    ‘Sinking funds’ often exist to cover major repairs, giving you peace of mind.
•    Building insurance is usually included in the service charge.
•    No garden or exterior work to manage, it’s all taken care of for you.
•    Apartments often feature secure entry, providing added safety and convenience.

Things to Watch Out For:

•    Lease length matters a shorter lease can reduce property value and make resale difficult. All Fairview leasehold properties have a 999-year lease.
•    Ongoing charges ground rent and service charges can add up.
•    Less freedom major changes often require approval from the freeholder or managing agent.

Leasehold: A Practical, Low-Maintenance Option

While freehold ownership offers autonomy, it also comes with full responsibility. In contrast, leasehold properties particularly well-managed apartments can be a more convenient and financially manageable option, especially for first-time buyers, downsizers, or those looking for a “lock up and leave” lifestyle.

If you prefer to avoid the hassle of structural maintenance, gardening, and unexpected repair bills, a leasehold apartment with a good managing agent and a transparent service charge could be the perfect fit.

Conclusion: Deciding what’s best for you

The choice between freehold and leasehold ultimately depends on your lifestyle, budget, and long-term plans. But don’t write off leasehold too quickly, it might just offer the ideal balance of affordability, convenience, and security you're looking for.

If you're buying your first home or want a low-maintenance living space in a prime location, leasehold could be the smarter, more strategic choice.