When buying a home or investment property, one of the first things you’ll encounter is the distinction between leasehold and freehold property. Understanding the difference is crucial before making such a big financial decision. To make this easier, Shaya Seidenfeld, an experienced real estate advisor, breaks down the key differences, pros, and cons so you can make the right choice.

1. What Is a Freehold Property?

A freehold property means you own both the building and the land it sits on outright. There’s no time limit on your ownership, and you can pass it down, sell it, or renovate it (subject to local regulations). Freehold is often seen as the most desirable form of property ownership because it gives you complete control.

Shaya Seidenfeld points out that many buyers prefer freehold because it provides long-term stability and eliminates the need to worry about leases expiring.

2. What Is a Leasehold Property?

In contrast, a leasehold property means you only own the property for a set number of years, decades, or even centuries—but not the land itself. The land is owned by a freeholder (often called the landlord).

Once the lease expires, ownership typically returns to the freeholder unless the lease is extended. Leasehold agreements can range from 30 years to 999 years, but the shorter the lease, the less valuable the property becomes.

Shaya Seidenfeld explains that leasehold ownership is common in apartment buildings, condos, and certain urban developments where land ownership is separate.

3. Key Differences Between Leasehold vs Freehold Property

To make the comparison clear, let’s look at the main differences side by side:

Ownership: Freehold gives you complete ownership; leasehold gives you temporary ownership for the lease duration.
Control: Freehold owners can renovate and modify more freely, while leaseholders may need the freeholder’s permission.
Costs: Leaseholders often pay ground rent, service charges, and maintenance fees. Freeholders usually only handle their own property expenses.
Value: Freehold properties generally hold or increase in value better, while leasehold properties can depreciate as the lease shortens.

According to Seidenfeld, understanding these differences helps buyers avoid surprises later.

4. Advantages of Buying a Freehold Property

Freehold property offers several benefits:

Permanent ownership with no lease expiration.
No ground rent or service charges to worry about.
Greater freedom to renovate, extend, or modify (within legal limits).
Stronger resale value compared to leasehold properties.

Shaya Seidenfeld notes that freehold homes are often preferred by families and long-term investors because they offer security and independence.

5. Advantages of Buying a Leasehold Property

While leasehold properties may sound limiting, they also have unique advantages:

Lower initial purchase price compared to freehold.
Shared maintenance costs for communal areas in apartment complexes.
Attractive urban locations, where leasehold is often the only option.
Professional management of building services, such as security, landscaping, and repairs.

Shaya emphasizes that for young buyers or those entering the property market in busy cities, leasehold can be a more affordable stepping stone.

6. The Downsides of Leasehold Ownership

Leasehold properties do come with challenges buyers need to consider:

Ongoing costs like ground rent and service charges.
Lease extensions can be expensive and complicated.
Restrictions on renovations or subletting.
Decreasing value as the lease gets shorter.

Shaya Seidenfeld recommends carefully reviewing the lease agreement before purchase to avoid unpleasant surprises.

7. Which Is Better: Leasehold or Freehold?

The answer depends on your goals.

If you want long-term security and full control, freehold is usually the better choice.
If you want to live in a city-center apartment at a lower price point, leasehold might be the only option.

Seidenfeld stresses that both options can work well depending on budget, location, and long-term plans. The key is to weigh ownership flexibility against affordability.

8. Shaya Seidenfeld’s Expert Advice for Buyers

With years of experience advising clients, Shaya Seidenfeld recommends:

Always check the lease length before buying a leasehold. Properties with under 80 years left can be tricky to finance.
Ask about hidden costs like service charges and ground rent.
Seek legal advice to fully understand your responsibilities.
Consider resale value—think about how attractive the property will be to future buyers.

By taking these steps, you can make a confident and informed decision.

Final Thoughts: Making the Right Property Choice

Deciding between leasehold vs freehold property can feel overwhelming, but with the right guidance, it becomes much clearer. Freehold gives you total ownership and long-term stability, while leasehold offers affordability and access to prime city locations.

As Shaya Seidenfeld explains, the key is to match your property choice with your lifestyle and financial goals. Whether you’re a first-time buyer, investor, or homeowner, understanding these differences ensures you make the best decision for your future.

Shaya Seidenfeld Explains What Is a Leasehold vs Freehold Property