Leasehold or freehold: What’s the difference?

The two most common forms of property ownership in the UK are freehold and leasehold but what do these terms mean in practice?

Leasehold

With leasehold you are buying for a fixed period, usually 99 years if the home is new though leases can be much shorter. However, you do not own the land the property is built on, the rights to which stay with the freeholder. Flats are almost always leasehold and often come with charges to the freeholder or their agents for service, maintenance or ground rent.

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