Merryn Talks Money Understanding Freehold Versus Leasehold in UK Real Estate
May 7, 2025
Anthony Emmerson, Director at Trinity Financial with two decades of mortgage expertise, joins the discussion about UK property ownership. He breaks down the differences between freehold and leasehold, the historical context, and the latest legislative changes. The talk highlights how lease length impacts property value and the crucial need for lease extensions as they approach 79 years. Emmerson also sheds light on upcoming leasehold reforms aimed at simplifying the system, making it vital for homebuyers to do their due diligence.
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Freehold vs Leasehold Explained
- Property ownership in England and Wales divides into two types: freehold and leasehold.
- Freehold means complete ownership of building and land; leasehold means owning the property but not the land under it.
Control and Maintenance in Leaseholds
- Leasehold ownership often means relying on a freeholder for building maintenance and permissions.
- Owning a share of the freehold gives leaseholders more control over upkeep and modifications.
Lease Length and Marriage Value
- Lease length significantly impacts property value; shorter leases reduce value and desirability.
- Extending leases below 79 years triggers marriage value, increasing extension costs but boosting home value.