In short
A leasehold flat means you own the right to live in the flat for a fixed number of years under a lease. Someone else, the freeholder, owns the building and the land. The lease sets out who repairs, insures and pays for what, usually through a service charge.
The basics
When you buy a leasehold flat you buy a long lease, commonly 99, 125 or 999 years when first granted, which gives you the right to occupy the flat for the remaining term. You do not own the structure of the building or the land it stands on. That belongs to the freeholder, who is your landlord under the lease.
Who is who in a block
| Leaseholder | You, the owner of the lease of a flat. Sometimes called the lessee or tenant in legal documents. |
|---|---|
| Freeholder | The owner of the building and land, and the landlord under the leases. Can be an individual, an investment company or the leaseholders themselves. |
| Share of freehold | Where the leaseholders collectively own the freehold, usually through a company in which each owns a share. |
| Residents' management company (RMC) | A company owned by the leaseholders that is responsible for management under the leases. How we support RMC directors. |
| Right to manage (RTM) company | A company set up by leaseholders under statute to take over management from the freeholder. More on RTM. |
| Managing agent | A firm, like EKIN, appointed by the freeholder, RMC or RTM company to run the building day to day. |
What the lease controls
The lease is the rulebook for your building. It sets out what part of the building you own (the "demise"), what the landlord must do, what you must do, what you pay, and what you need permission for, such as alterations, subletting or keeping pets. Two neighbouring flats can have different leases, so we always read the actual lease before answering a question.
Service charges and ground rent
Service charges pay for running the building: insurance, cleaning, repairs, safety checks, management and contributions to a reserve fund. They must be reasonable and are subject to strong legal protections. More on service charges.
Ground rent is a separate annual payment to the freeholder under older leases. Most new residential leases granted since 30 June 2022 have ground rent set at a peppercorn (effectively zero), and the government has proposed further limits on existing ground rents.
Lease length
A lease is a wasting asset: as the remaining term falls, the flat becomes harder to mortgage and sell, and more expensive to extend. Once a lease drops below about 80 years, the cost of extending it rises significantly under the current valuation rules. Leaseholders of flats have a statutory right to extend their lease, and since 31 January 2025 they no longer need to have owned the flat for two years before using it. Further changes to lease extension terms and valuation are in the Leasehold and Freehold Reform Act 2024 but depend on regulations. Take specialist legal and valuation advice before starting.
Who repairs what
As a general pattern, and always subject to the lease:
- The structure, roof, foundations, external walls and common parts are usually the landlord's or management company's responsibility, paid for through the service charge.
- The inside of your flat, including internal walls, floor finishes, fixtures and the pipes and wiring that serve only your flat, is usually yours.
- Windows and front doors vary widely between leases and are a frequent source of dispute.
Leasehold reform
Leasehold law is changing. The Leasehold and Freehold Reform Act 2024 is being brought into force in stages, and a draft Commonhold and Leasehold Reform Bill was published in January 2026. Our guide to leasehold reform in 2026 explains where things stand.
Frequently asked questions
Is leasehold the same as renting?
No. You own the lease, which is a valuable asset you can sell or mortgage. But you are still bound by the terms of the lease, including paying service charges.
Who do I contact about a problem in the common parts?
The managing agent, if there is one, or whoever manages the building under your lease: the freeholder, RMC or RTM company.
Can I buy the freehold?
Leaseholders of flats can often buy the freehold together through collective enfranchisement if enough of them take part. It needs specialist legal and valuation advice.
Last reviewed 2026-09-23 against the sources listed. This page is general information about England and is not legal advice; the lease for your building always comes first.