Compare
Freehold vs Leasehold
Freehold means you own the property and the land it stands on with no end date. Leasehold means you own the right to occupy for a fixed number of years under a lease from the freeholder. Tenure affects cost, control and resale value.
Side by Side
| Freehold | Leasehold | |
|---|---|---|
| What You Own | The property and land, indefinitely | A right to occupy for the length of the lease |
| Time Limit | None | Fixed term; value can fall as the remaining term shortens |
| Ongoing Costs | Upkeep yourself; shared estates may still charge fees | Service charges and, in some leases, ground rent |
| Control | Full, subject to planning rules | Changes often need the freeholder’s consent |
| Mortgages | Straightforward | Lenders may refuse short leases |
| Typical In | UK houses; designated freehold zones in Dubai | UK flats; some non-freehold areas abroad |
Who Each Option Suits
Freehold
- Long-term owners wanting full control
- Buyers who want no lease-term risk
Leasehold
- Flat buyers in markets where leasehold is the norm
- Buyers prioritising location over tenure, with a long lease remaining
Can foreigners buy freehold in Dubai?
Yes, in areas designated for foreign freehold ownership, which include most major residential communities. Outside them, foreign buyers are usually limited to leasehold or usufruct rights.
How long should a leasehold be?
Many UK lenders are cautious below about 80 years remaining, and extending a lease gets more expensive as the term shortens. Check the remaining term early.
Is a share of freehold the same as freehold?
No. With a share of freehold, flat owners jointly own the freehold company and usually hold long leases, which gives them collective control of the building.
General information, reviewed 2026-10. Rules and thresholds change; confirm the current position with a qualified adviser before you act.