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.
20:10
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- Freehold ownership provides complete control over both the property and land, while leasehold complicates ownership with ongoing financial obligations to a freeholder.
- Upcoming legislative reforms aim to simplify leasehold processes, reducing costs and enhancing ownership security for leaseholders facing adversarial freeholders.
Deep dives
Understanding Freehold vs Leasehold Properties
There are two primary property ownership types in England and Wales: freehold and leasehold. Freehold ownership allows individuals to own both the building and the land it sits on, whereas leasehold means ownership of a property is limited to the interior space, with the land remaining owned by a freeholder. This distinction originates from historical feudal practices where property ownership was subdivided, leading to the creation of leases lasting typically 125 years. Buyers of leasehold properties often find themselves paying ground rent to the freeholder, which can create ongoing financial obligations and complexities that may not be fully understood at the point of purchase.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
