Leasehold

Government guidance puts the core idea simply: 'You only own a leasehold property for a fixed period of time', under a legal agreement with the landlord — sometimes called the freeholder — known as a 'lease', which states how many years the ownership lasts. Ownership of the property returns to the landlord when the lease comes to an end. Most flats are leasehold, and houses can be too, particularly when bought through a shared ownership scheme.

A leaseholder is not necessarily locked into leasehold ownership forever: the same guidance confirms a leaseholder can ask the landlord to sell them the freehold at any time, though the process differs depending on whether the property is a flat (typically buying a share of the freehold) or a house (which may carry a right to buy the freehold outright).