Tenure guide
Leasehold vs freehold: what UK sold prices show
Tenure changes what you are actually buying. In HM Land Registry sales registered in 2025 across England and Wales, the median leasehold sale was £222,000 against a £300,000 median for freehold — a gap driven mostly by the fact that leasehold sales are dominated by flats. This guide explains the difference, what the data through August 2026 shows, and where the leasehold reforms stand.
Tenure in registered 2025 sales
These figures come from price paid records registered with HM Land Registry in calendar year 2025 (England & Wales, all recorded sales):
| Tenure | Registered sales | Median price | Average price |
|---|---|---|---|
| Freehold | 709,577 | £300,000 | £403,433 |
| Leasehold | 199,666 | £222,000 | £315,015 |
The split by property type is stark: about 98% of flats sold in 2025 were leasehold (146,409 of 149,766), while over 93% of detached, semi-detached and terraced houses were freehold. So the leasehold-freehold price gap largely reflects the flat-house price gap, not a like-for-like tenure discount. When you compare a leasehold flat listing against local evidence, compare it with other flats — not with the overall area average.
What to check before buying leasehold
- 1. Remaining lease term. Below roughly 80 years, extension costs rise and many lenders become cautious. Ask for the exact number of years remaining, not “long lease”.
- 2. Ground rent schedule. Check the current amount and every review clause. Escalating ground rents can affect both mortgageability and resale.
- 3. Service charge history. Ask for the last three years of accounts and any planned major works — a large one-off bill can dwarf a price negotiation.
- 4. Building safety and insurance. For flats, ask about cladding remediation status and the buildings insurance arrangement.
- 5. Compare with sold flats nearby. Use the postcode or street page for the address and filter your reading to flat sales, which the transaction tables label by property type.
Where the leasehold reforms stand (mid-2026)
The Leasehold and Freehold Reform Act 2024 became law in May 2024, but it is being brought into force in stages:
- In force: the two-year ownership requirement before a flat owner can claim a statutory lease extension was removed in early 2025, and access to Right to Manage was widened for mixed-use buildings.
- Not yet in force: the headline 990-year lease extensions, zero ground rent on extension, and the abolition of marriage value still depend on secondary legislation. The government said it expects to consult on the valuation rates during 2026, with litigation from freeholder groups continuing.
If you are buying a flat with a lease near or below 80 years, do not assume the cheaper reformed extension regime is available yet — check the current position on gov.uk or with the Leasehold Advisory Service before pricing the extension into your offer.
Important limitation
Sold-price records do not show the remaining lease term of each sale, so a leasehold comparison based on this data cannot adjust for lease length. This guide is general information, not legal or financial advice.
Check flat-heavy markets
Leasehold questions matter most where flats dominate the market:
Frequently asked questions
What is the difference between leasehold and freehold?
Freehold means you own the property and the land it stands on outright. Leasehold means you own the right to occupy the property for the remaining term of a lease, while a freeholder owns the building or land and may charge ground rent and service charges.
Are all flats leasehold?
Almost all. In registered 2025 sales across England and Wales, around 98% of flats sold were leasehold, while over 93% of houses (detached, semi-detached and terraced) sold were freehold.
Does a short lease reduce the value of a property?
Yes, in general. Leases below roughly 80 years become progressively harder to mortgage and more expensive to extend, which is reflected in sold prices. Always check the remaining lease term before comparing a leasehold listing with local sold-price evidence.
Can I extend my lease as soon as I buy?
Since early 2025 flat owners no longer need to have owned the property for two years before claiming a statutory lease extension. Other parts of the Leasehold and Freehold Reform Act 2024, including 990-year extensions and the abolition of marriage value, were not yet in force as of mid-2026.
Is buying leasehold a bad idea?
Not necessarily. Leasehold is the standard tenure for flats. What matters is the remaining lease term, the ground rent schedule, the service charge history and the managing agent. Factor those into any comparison with local sold prices.