Guide to Property Tenure (England & Wales)

Freehold, leasehold and commonhold explained in plain English

When you buy (or sell) a home, tenure tells you what you own, what you don't, and what rules come with it. It can affect your ongoing costs, what changes you're allowed to make, and even whether a lender will offer a mortgage.

Most of the time, tenure is straightforward. But it’s one of those topics where a small detail (like the remaining lease term, or who manages the building) can make a big difference later.

This guide explains the main types of tenure you’ll see, what they mean in practice, and what to check before you commit.

Key takeaways

• Freehold: you own the property and the land (usually simplest).
• Leasehold: you own the right to live in the property for a fixed term, under a lease; the land/building structure is owned by the freeholder.
• Commonhold (England & Wales): you own your flat/unit freehold, and a commonhold association manages shared parts.

What is “tenure”?

Tenure is the legal basis on which you own or occupy a property. Essentially:

• who owns the property and the land
• how long you can live there
• what responsibilities and restrictions apply

Tenure is commonly checked during:

• mortgage applications
• conveyancing (legal work)
• buildings insurance setup

The main types of tenure you’ll see

Freehold

With a freehold home, you usually:

• own the property and the land it sits on
• arrange and pay for your own maintenance
• are responsible for buildings and contents insurance
• don’t pay ground rent
• may pay shared maintenance charges only if your home relies on shared services (e.g., private road)

Example

A detached house where you own the house and garden outright, and you maintain the roof, walls, drains, and boundaries.

Watch-outs

Some freehold homes still have charges (for shared roads/grounds). It's not leasehold, but it can still mean a regular cost.

Leasehold

What it means

Leasehold means you have a legal agreement (the lease) with the freeholder/landlord that says what you can and can't do, and how long you own the property for.

With leasehold:

• you do not own the land the property stands on
• for flats, you don’t own shared parts (hallways, stairs) or the building structure
• the lease is granted for a fixed number of years (often 99 or 125 when first granted) and shortens over time

If you’re a buyer, and the remaining term on the lease is shorter than 85 years, we suggest seeking professional advice, as this may impact the mortgageability of the property.

You may also pay:

• Ground Rent & Service Charge (towards maintenance/insurance/management)
• ground rent (depending on the lease and when it was granted)

Example

A flat in a block where you own the lease to your flat, and you pay service charge for upkeep of the building and communal areas.

What to check (step-by-step)

For buyers, your legal adviser will guide you through:

1. How many years are left on the lease (exact figure)
2. Service charge: last 2 to 3 years and what's included
3. Ground rent: how much and how it increases (review clause)
4. Restrictions: pets, subletting, alterations, holiday lets, etc.
5. Who manages the building: freeholder, managing agent, or residents (Right to Manage)

Solicitors & Conveyancers

Commonhold (mainly England & Wales)

Commonhold is designed for multi-occupancy buildings (like blocks of flats). In a commonhold:

• each owner owns the freehold of their unit
• a commonhold association owns and manages the shared parts (hallways, roof, structure), with standardised rules

Commonhold was introduced in 2004 and has historically been rare, but it’s a key part of current reform discussions.

Example

A modern block where each flat owner owns their flat outright, and all owners collectively run the building via the association.

Tip

If you’re buying in Scotland or Northern Ireland, it’s worth using nation-specific guidance and a local legal professional early.