In England and Wales, there are two ways to hold land: freehold and leasehold. Most houses tend to be freehold properties, whereas most flats tend to be leasehold. If you can’t decide which is better for your property goals, contact PDR Property Lawyers. Our team of freehold and leasehold conveyancing lawyers can walk you through the benefits of both freehold and leasehold conveyancing. Compare the difference between leasehold and freehold properties below and call us at 01733 203873 with any questions or concerns. We’re here to help!

Instant online conveyancing quote!

Our expert property lawyers know how important it is for our customers to be able to quickly receive an accurate estimate of your expected conveyancing fees. Fill in our instant quote form, or alternatively email us on info@pdrpropertylaw.com or give us a call on 01733 203873.

Get started today

Freehold vs. Leasehold Conveyancing

The main difference between freehold and leasehold is that one retains its value whereas the other does not. A freehold property will always maintain its value and will only increase over time. A leasehold property loses its value as the lease gets shorter. For instance, should you purchase a flat with a 50-year lease, it would only be worth about 70% of what an identical flat with a 99-year lease would be valued.

What to Consider Before Committing to Leasehold Conveyancing?

Before you do anything, you must first decide whether you want to own the property indefinitely or are happy to give the property back to the landlord after a certain period of time, historically after 99 years. If the latter suits your needs, a leasehold property may be right for you, as you’ll gain temporary right (potentially for decades) to occupy a property.

When you’re ready to lease, you’ll enter a contract known as the “Tenant’s Covenant,” which details the rules you need to obey as a tenant of a leasehold property. Your contract will outline the rights and obligations of both the Landlord (Lessor) and Tenant (Lessee) so you know what’s expected of each party. Your lease contract will normally specify that the Landlord (Lessor) will grant the Tenant (Lessee) “quiet enjoyment” of the property provided that the Tenant (Lessee) obeys the terms of the contract. Rent usually costs between £50 and £250, due to the fact that the Tenant (Lessee) is usually responsible for paying all costs related to the maintenance and repair of the property. When your lease term ends, the Tenant (Lessee) will “quietly yield up possession.”

Additional Leasehold Conveyancing Tips

  • Leases are not standardised so be sure your lease contract has been drafted correctly. Check the lease plan to ensure parking spaces, bin stores, paths and other communal areas are clearly marked.
  • Once you’ve owned your leasehold flat for two years, you can apply for a lease extension. You’ll receive a new lease for a new term of 90 years, plus what remains on your old lease.
  • If there are less than 80 years left on a lease, the price payable will be higher so extend your lease well before its termination date.
    Most residential flat leases require a Tenant (Lessee) to pay small ground rent. The cost of ground rent tends to exceed £150 a year and can increase over time.
  • The Landlord (Lessor) can ask for a service charge in your contract. He or she will divide up the cost of insuring and maintaining the flat between Tenants and charge an appropriate fee.

Freehold and leasehold conveyance can be tricky, so contact PDR Property Lawyers for step-by-step help. We’re the award-winning property conveyancing lawyers you can trust!

Company I Can Rely On

home1
★★★★★
I have used PDR Property Lawyers a few times as I am a property investor - it is important for me to use a local company I can rely on. I have always found Michelle and her staff to be very helpful, someone always returns my calls and although they cannot always respond quickly to my emails I do get a response within 48 hours. I like Michelle's no nonsense approx, Michelle is always totally honest in relation to having a realistic expectation as to when my matter will exchange and complete. I have no hesitation in recommending PDR Property Lawyers - I often recommend them to my friends and family.
- Julie Anderson

Happily Use Again

home2
★★★★★
Used this firm to buy a house and found them very pleasant and easy to deal with. They kept me updated and persevered when things got held up due to no fault of theirs. Would happily use them again.
- Fiona Winter

Fabulous Company

home3
★★★★★
Fabulous company to work with. Michelle Rickard (the boss!) is truly a star and her staff are second to none. They ALWAYS pick up the phone, they ALWAYS get back to you, and they work incredibly hard, under immense pressure to get the job done. I sold a property recently, and because they knew how important it was to get the sale sorted quickly, they undertook the conveyancing at super speed - nothing was too much trouble! Would have no hesitation in recommending this company. Have dealt with many different conveyancer's over the years, and this company are about as good as it gets!
- Bertie Edwards


Read More of Our Property Advice

When Should You Put Your House on the Market?

If you are considering moving house, you may be wondering which month is the best month to sell your home. Based on research conducted by The Advisory, we can tell you! Read our blog to discover the perfect time to buy or sell a home and contact PDR Property Lawyers for affordable and efficient property […]Read More

We’ve Launched a Live Chat Service!

Here at PDR Property Lawyers, we know that buying or selling a home can be stressful. A house sale can constantly play on the mind, whether you’re commuting to work or picking up the kids from school. Very often the concerns you have can be dealt with over the phone with a conveyancing lawyer, but […]Read More

5 Tips To Help You Get On The Property Ladder

Getting on the property ladder and becoming a home buyer for the first time is reported to be harder than ever before. Property prices across the UK are soaring, which means people aged 20-30 years old are moving away from their hopes of becoming home buyers and staying with parents or making the most of […]Read More