Property in the England and Wales: short guide

September 25, 2024

Property law governs the various forms of ownership in real property (land and buildings) and personal property (movable items, digital assets, and intellectual property rights).

Homeownership in England and Wales consists of two tenure types: freehold and leasehold.

Freehold is ownership over the land and the property built upon it, which lasts forever and generally gives extensive control over the property.

Leasehold provides time-limited ownership (for example, a 99-year or 125-year lease) and control of the property, which is shared with and limited by the landlord (freehold owner).

Most flats in England and Wales are owned on a leasehold basis, and around 8% of houses are leasehold. The residential leasehold sector accounts for 20% of the housing stock in England and 16% in Wales (source – Leasehold and Freehold Reform Bill 2023-24).

Purchasing property is a significant investment, so understanding the differences between types of property is vital for both legal and practical purposes.

Freehold ownership means that you have full ownership of the property without time restrictions, providing maximum control and long-term security. You can also make changes to your property without someone else’s permission (except local authorities in the case of any building alterations). Generally, you do not incur payments such as ground rent, communal/shared area maintenance costs, or service charges to a freeholder, which can potentially lead to cost savings in the long term. Also, freehold properties may appreciate in value over time, offering potential financial gains.

Besides the benefits of freehold ownership, you will be solely responsible for the property’s maintenance and upkeep, including repairs and associated costs. Consider also that freehold properties often have a higher purchase price compared to leasehold properties because of the greater ownership rights and responsibilities.

Common examples of freehold property types include residential (detached houses, semi-detached houses, terraced houses) and commercial ones (industrial units, office buildings, retail spaces, etc.).

Buying and selling property involves several steps and legal requirements. Hiring a solicitor will help navigate the process.

If you are thinking about buying or selling a property or wish to know any further information, please do not hesitate to contact us on 0121 705 7571 and ask to speak to our knowledgeable Property Department.

Kateryna Knyazyeva
Paralegal – Commercial Property Department

This article is for general information purposes only. It does not constitute technical, financial, legal advice or any other type of professional advice and is no substitute for specific advice based on your individual circumstances. We do not accept responsibility or liability for any actions taken based on the information in this article. For more information, please click here.