Leasehold vs freehold
Lesson 10 of 12 in our free Buying a Home guide: a 5-minute money game with the key points below.
This lesson is in the full version.
Free with a code from your uni, college, council, landlord or employer (worth £600/year). Lesson 1 of Buying a Home is free for everyone.
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Questions you'll answer
Which is usually true of a freehold house?
Quick facts
- Lease with 70 years left → Red flag. Short leases can be hard to mortgage and costly to extend.
- Clear, published service charge history → Green flag. Transparency about costs.
- Ground rent that doubles every 10 years → Red flag. Escalating ground rent can cause big problems.
- Long lease and a well-run building → Green flag. What you want to see.
- Fact: “Scotland mostly doesn't use residential leasehold.” — Scottish homes are generally owned outright — different system, different rules.
- Fact: “Service charges can go up.” — Major works like a new roof can mean big bills. Check reserves before buying.
- Myth: “Lease length doesn't matter when buying.” — It affects value, mortgage options and future costs.