Leasehold

Definition

Leasehold means you own the right to live in a property for a fixed number of years under a lease, but you do not own the land outright.

Why leasehold matters for budgeting

Leasehold properties can come with ongoing costs such as:

• service charges
• ground rent (where applicable)
• contributions to building maintenance and communal areas

The lease terms also affect what you can do with the property (permissions, alterations, subletting rules, etc.).

Practical tip

If you’re buying leasehold, ask for the service charge schedule and recent history and make sure your monthly budget includes those costs, not just the mortgage.