Share of Freehold vs Leasehold: What's the Difference?

One of the questions we're often asked by buyers looking in Prime Central London is: "Should I buy a leasehold or share of freehold property? Which is better and what’s the difference?"

The truth is, neither is automatically "better"; it depends on the property, the building and your priorities.

Leasehold
With a leasehold property, you own the right to occupy your home for a fixed number of years under a lease. The freehold is owned by someone else, who (or their managing agent) is usually responsible for the building's maintenance and management.

Advantages
✔ Often professionally managed
✔ Less day-to-day involvement for owners
✔ Common in larger developments with concierge and amenities

Things to consider
• Lease length
• Service charges and ground rent (where applicable)
• Less control over how the building is managed

Share of Freehold
With a share of freehold, you still own your flat on a lease, but you also jointly own the freehold of the building with the other flat owners.

Advantages
✔ Greater control over the management of the building
✔ Easier to extend the lease if required
✔ Often viewed positively by buyers, particularly in period conversions

Things to consider
• Decisions are made jointly with the other owners
• Good communication and management are essential
• Owners share responsibility for maintaining the building

In Prime Central London, many elegant period conversions in Chelsea, Kensington and Belgravia are sold with a share of freehold, while luxury apartment developments often remain leasehold with professional management.

The most important thing isn't simply whether a property is leasehold or share of freehold—it's understanding the lease, how the building is managed and whether the ownership structure suits your lifestyle and long-term plans.

IF you’re looking for a property to buy in Prime Central London, whether that’s leasehold, share of freehold or freehold - give us a call!