e: hello@fortis.homes
    Get a Valuation
    Register
    Logo
    2a Fairwater Greenn
    Cardiff, CF5 3BA
    t: 02920 561111
    e: hello@fortis.homes
    LogoLogo

    Our Branches

    Fairwater Branch

    Fortis Cardiff, 2a Fairwater Green,
    Cardiff CF5 3BA
    cardiff@fortis.homes
    02920 561111
    Area Guide

    Pontcanna Branch

    Sophia House, 28 Cathedral Road, Pontcanna, Cardiff CF11 9LJ
    pontcanna@fortis.homes
    02920 109209
    Area Guide

    Looking to let?

    Please visit our sister company,
    Redkey Property Services

    Home/News/What is the Difference Between Freehold and Leasehold?

    What is the Difference Between Freehold and Leasehold?

    about 2 months ago
    Sales
    What is the Difference Between Freehold and Leasehold?

    Buying a new home in Cardiff is a commitment, and it’s not one that you should ever take lightly. It’s also not something you should go into blind. Having a deposit saved up, looking at your budget, knowing what you need from the property ahead of time – all of these things will help immensely when buying a house.

    Knowing the difference between a freehold and a leasehold is also important as it can impact which properties in Cardiff you will be looking at as a whole. Knowing if you’re happy to look at leasehold properties or if you only want to view freehold properties can streamline your hunt for a new home immensely. So, first, let’s look at Freehold:

    What is a Freehold?

    A freehold means you buy not only the house but also the land it sits on. You own it and are responsible for the upkeep and in charge of all the decisions. If you want to extend, change, or renovate the property the only obstacle is the relevant planning and building permissions.

    Share of Freehold You might also come across a concept known as Share of Freehold which means you are a leaseholder that is a director of the Leasehold company. This is mostly the case when purchasing a flat, as you do not own the whole property, only a portion of it. You will then enter into a ‘Share of Freehold’ agreement with the other flat owners.

    What are the Benefits of a Freehold? When you own a Freehold, you own it outright. You have control over the property and land and don’t need to worry about your Leasehold tenancy ending. Now let’s look at Leasehold:

    What is a Leasehold? As the name suggests, you own the property for a certain tenure of years, but you do not own the land itself. This means you have to pay a ground rent, which, in most cases, is a small amount, though it can be increased at any time. New legislation is in progress to reduce Leasehold ground rents though, and in the future this could either be zero or a very small, fixed-rate sum. When the lease expires, the ownership of the property reverts to the freeholder.

    Leasehold agreements are commonly 99 years or 125 years, with some extending 500 or even 999 years. If you like the look of a Leasehold property, it is important to know how long is left on the lease as this will affect you when it comes to securing a mortgage.

    Lenders generally won’t loan you money if there is less than fifty years left on the lease after the mortgage lending period, and so it is recommended not to buy a Leasehold property that has less than 80 years left. If the Leasehold you are looking at does have less than 80 years, you can see about options for renegotiating with the freehold owner to extend the Leasehold to its full amount or even longer.

    What are the Benefits of a Leasehold? You don’t have to repair the outside, right of way access, or maintenance of the property itself. You are only responsible for the interior of your property. During the Leasehold, you can sell on your home as usual.

    What are the Downsides of a Leasehold? You will need to adhere to the rules set out by your Freeholder, which includes ground rent and the service charge collected to handle the upkeep of the building and common areas. When the Leasehold tenancy ends, your entire property reverts back to the freeholder, so even if you technically own the building during the Leasehold, you don’t once the tenancy ends.

    This makes it very difficult to sell on and recoup your investment cost once the tenancy nears 80 years or less, whereas with a freehold you can sell for market value or even rent the property out.

    There is an increasing trend for Leasehold properties – particularly in shared ownership schemes, so it’s important to ensure you know whether the property you are interested in is freehold or leasehold before you buy!

    If you are considering buying a property for sale marketed through Fortis , our friendly, knowledgeable team can advise you!

    Share this article

    More Articles

    What Happens After Your Offer Has Been Accepted?

    What Happens After Your Offer Has Been Accepted?

    Published about 14 hours ago

    You’ve found the perfect property in Cardiff or the surrounding area — perhaps a modern home in Lisvane, a period property in Pontcanna, or a waterfront apartment in Penarth.

    Read More
    Selling With a Sitting Tenant in Cardiff: Pros & Cons

    Selling With a Sitting Tenant in Cardiff: Pros & Cons

    Published 8 days ago

    If you want to sell a property during a fixed-term tenancy, you don’t have to wait until the agreement ends before going to market. 

    Selling a property with sitting tenants is often an excellent opportunity for landlords – and a very attractive sale for some buyers. But, alongside the pros, there are some cons to consider as well.

    Read More
    Adding value: the small improvements that make a big difference

    Adding value: the small improvements that make a big difference

    Published 12 days ago

    The unassailable attractiveness of property as a money-making asset persists. While passive appreciation still exists – that’s when homes gradually increase in value with nothing more than time – homeowners are looking at adding values in other ways.

     

    Read More

    Sign up for our newsletter

    Subscribe to receive the latest property market information to your inbox, full of market knowledge and tips for your home.

    You may unsubscribe at any time. See our Privacy Policy.

    Back to Home

    Services 

    Selling
    Buying
    Land & New Homes
    Auction
    Letting
    Become A Partner

    Fortis Pontcanna 

    Sophia House,
    28 Cathedral Road,
    Pontcanna, Cardiff CF11 9LJ
    t:  02920 109209
    Email us

    Fortis Fairwater 

    2a Fairwater Green,
    Cardiff, CF5 3BA
    t:  02920 561111
    Email us

    NAEA
    OnTheMarket
    RightMove
    ThePropertyOmbudsman
    Logo
    © 2025 Fortis Properties
    Privacy Policy|Terms & Conditions|Cookie Policy|Complaints Procedure
    Powered by