When buying a property, whether it is freehold or leasehold, has a direct impact on value, maintenance responsibility, future costs and long-term saleability.From a surveying perspective, the tenure of a property affects not only legal ownership but also risk, condition, and ongoing financial exposure, all of which are relevant when commissioning a HomeBuyer Report or Building Survey.
Below, our surveyors explain the key differences between freehold and leasehold, why they matter when assessing a property, and how the 2026 leasehold changes may affect buyers and owners in 2026.

What is the difference between freehold and leasehold?

Freehold – You own the property and the land it stands on outright, with full responsibility for repair and maintenance.
Leasehold – You own the property for a fixed period under a lease, but not the land. The freeholder retains ownership of the building structure and common parts.
This distinction is particularly important when assessing who is responsible for defects, repairs, and future works.

Why the difference matters from a surveying perspective

1. Repair and maintenance responsibility
With a freehold property, the owner is usually responsible for all repairs and maintenance. Any defects noted in a survey,such as roof damage, damp, or structural movement, fall under the freeholder’s responsibility to address.
With leasehold properties, responsibility may be split:
The freeholder or managing agent may be responsible for roofs, external walls and communal areas
The leaseholder may still be liable for contributing to repair costs through service charges
A survey may identify defects that do not fall under the individual flat owner’s control, but which could still result in future costs.

2. Service charges and future works
Leasehold properties often come with service charges covering maintenance, insurance and major works.
From a surveying perspective, this matters because:
Older buildings may be approaching major repair cycles
Planned works can lead to substantial one-off contributions
Poor maintenance can affect both condition and value

3. Lease length and marketability
Lease length is an important factor in property value and saleability.
A lease with fewer than 80 years remaining can:
Make the property less attractive to buyers
Limit mortgage options or require higher deposits
Potentially reduce the sale price compared with similar properties with longer leases
Surveyors highlight short leases because they can affect resale prospects and buyer interest, even if the property is in good physical condition.

4. Long-term ownership risk
Unlike freehold ownership, a lease is a diminishing asset. If it expires and is not extended, ownership reverts to the freeholder.
Although this is rare in practice, it underlines why surveyors encourage buyers to:
Understand lease length early
Consider future extension costs
Assess whether the property remains a suitable long-term investment

What is commonhold?

Commonhold is an alternative form of ownership, mainly intended for flats.

Under commonhold:

• Each owner owns their unit outright
• There is no lease, ground rent or freeholder
• Owners jointly manage the building through a commonhold association
• Although commonhold has existed in law since the early 2000s, it has been rarely used. The government now intends to promote it more actively for new flats.

Latest leasehold changes, what you need to know in 2026

Major government leaseholder reforms are coming
The UK government has been pursuing one of the most significant overhauls of the leasehold system in years.

Key leasehold changes include:
The removal of the two-year rule
Leaseholders no longer have to own a property for two years before extending the lease or buying the freehold. This change came into force on 31 January 2025 and applies to many existing leaseholders too.
Right to Manage Reforms:
From March 2025, changes to the Right to Manage rules mean:
Leaseholders in buildings with up to 50% non-residential space can exercise the right
Freeholders’ legal costs are typically not payable by leaseholders when making a claim

Draft Commonhold and Leasehold Reform Bill

Published on the 27th of January 2026, this draft legislation marks the next stage of reform. The bill is now subject to parliamentary scrutiny, but here is what it proposes in its current form:
Ground rent caps
Proposed cap of £250 per year for existing residential leases, reducing to a peppercorn (effectively zero) after 40 years if the legislation is enacted.
Banning new leasehold flats
The Bill proposes ending leasehold as the default for new flat sales and steering future owners towards commonhold.
Easier transition to commonhold
Existing leaseholders may be able to convert buildings to commonhold if they choose.
Abolishing forfeiture
Previously, freeholders could repossess a property over relatively small debts, but the government plans to replace this with a court-based process.
Note: These draft measures are subject to parliamentary scrutiny and not all will take effect immediately.
You can read the government’s guide to the Draft Commonhold and Leasehold Reform Bill HERE.

What this means for buyers commissioning a survey

For buyers, understanding whether a property is freehold or leasehold helps put a survey into context:

• A survey identifies physical conditions and defects
• Tenure helps determine who is responsible for addressing them
• Lease terms and management structures can affect future costs
• Legal reforms may influence long-term value and desirability
• A survey should always be read alongside the legal documentation to form a complete picture.

How Avery & Co can help

We provide independent residential surveys across the North West of England and North Wales, including:

• HomeBuyer Reports
• Building Surveys
• Help to Buy Valuations
• Residential Valuations
• Energy Performance Certificates (EPC)
• Various Professional Services

Our role is to help you understand what you’re buying, how it may perform over time, and where potential costs or risks could arise, so you can make an informed decision with confidence.
📞 Call us: 0330 088 5040
📧 Email: hello@averysurveys.co.uk
🌐 Visit: Avery&Co Services