Leasehold

This is the tenure that applies to most flats and maisonettes in the UK (excluding Scotland). As opposed to freehold property the rights to the property are owned only for a fixed period of time, with the freehold being held by a third party. The lease outlines the responsibilities of the various lessees in a block and determines the arrangements to be adopted for such things as upkeep of the common areas and insurance of the property. Because these cross covenants are required to avoid disagreements and confusion between the lessees only leasehold flats and maisonettes are mortgageable.

This should not be confused with the situation where the freehold is owned by all the lessees in a block and this will commonly be advertised as 'share of freehold'. Providing individual leases exist for each lessee then this would normally be acceptable to mortgage lenders. If in any doubt always take legal advice before proceeding.

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