Leaseholder information

Differences between freehold and leasehold

Properties sold under the right to buy scheme are transferred on either a freehold or leasehold basis. This depends on the type of property you are buying and where it is located.

Generally if your property is:

• a flat or in a block you will be a leaseholder
• a house you will usually be a freeholder

Your Section 125 offer notice and transfer documents will show whether your property was sold on a freehold or leasehold basis.

Freeholder

As a freeholder, you have purchased the property in its entirety, the land included will be detailed in the layout plan agreed prior to sale. You are not normally asked to pay service charges unless we intend to carry out work to areas around your property that you will benefit from.

There will be restrictions that cover what you can and cannot do with the property. These restrictions are generally designed to protect against alterations to the property and gardens, or any other changes that would affect the overall appearance or management of the neighbourhood.

If you do breach any restrictions, you could be asked to put it right at your own cost or we could take legal action against you.

Leaseholder

Leasehold is a transfer of a flat or house on a long lease arrangement as opposed to outright sale. The leases are normally for 125 years. As all leases within the same block should end at the same time, your lease may be slightly shorter if other flats in the block have already been sold.

Last updated 20 May 2025