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Updated October 2025
Summary: Tenure, Freehold, Leasehold
Who it’s for
Homebuyers, first-time buyers, and remortgagers wanting to understand what tenure means and the differences between freehold, leasehold, and share of freehold before applying for a mortgage.
What we do
As an independent mortgage broker, we explain how tenure affects mortgage eligibility, property value, and long-term costs. We help you compare 25,000+ products from 130+ lenders, ensuring the property’s tenure fits your goals and the lender’s criteria.
How it works
Your adviser checks the property’s title and lease length early in the process. We liaise with lenders and solicitors to flag any issues — from short leases to ground rent clauses — before you commit, saving time and stress later.
Why trust you
FCA-regulated, CeMAP-qualified advisers with 2,500+ verified 5★ reviews. We handle hundreds of leasehold and freehold cases each year, offering clear, jargon-free explanations and complete transparency at every step.
Next step
Understand your property’s tenure and what it means for your mortgage.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Tenure: Freehold & Leasehold Meaning (What Lenders Look For)
Tenure freehold meaning: You own the property and the land outright with no end date.
Tenure leasehold meaning: You own the property for a fixed term under a lease, but not the land—the lease eventually ends (unless extended) and terms like ground rent/service charges apply.
Why it matters for your mortgage:
Lenders care about lease length, any rent/charges and certain restrictions (e.g., sub‑letting). The right advice early can be the difference between a smooth approval and a declined application. You should get independent mortgage advice and benefit from:
- Free, No Obligation Advice
- Guidance and Quick Questions
- Award Winning Advice
Tenure, Leasehold & Freehold Meaning
Need to clarify the meaning? Our experts explain the differences between freehold and leasehold quickly and easily.
Tenure is a collective term that relates to the nature of the owner’s title to a property. For example, do they own it on a freehold or a leasehold basis? Put simply, tenure relates to something you possess or hold.
Having a freehold tenure means you have the full rights of ownership over that property and the land it sits on. However, if you are looking to buy a property, do check and confirm that this is the case. Never assume a house is freehold and a flat is leasehold; there are occasions when the opposite could be true in each case.
Read here for our quick questions around Tenure, Freehold and Leasehold Properties.
Under English & Welsh Land Law, the term “tenure” simply means the way in which an interest in land is held. There are 3 recognised tenures, Freehold, Leasehold & Commonhold tenure.
In England & Wales, there are Freehold tenure, Leasehold tenure and Commonhold tenure.
In Scotland, property law does not use the same concept of freehold and leasehold. Instead, all land in Scotland is held either as a heritable property (which means there is outright ownership) or it is under a lease.
Under section 1(1)(a) of the Law of Property Act 1925, a freehold estate is technically described as an “estate in fee simple absolute in possession”.
What does this phrase mean – “Estate in fee simple absolute in possession”. In simple terms – it means outright ownership of both the land and any building on it – with no fixed end date!
As the ownership duration is unlimited, the freehold ownership continues indefinitely. It only comes to an end if the outright owner choses to dispose of it by way of sale, gift or otherwise.
As freeholder owner, you have absolute exclusive rights to possess, occupy, use, mortgage or sell the property. You also have freedom to mortgage the property depending on criteria. All actions are of course subject to any legal restrictions e.g. planning laws etc.
Leasehold Tenure grants a set number of years, that are absolute. Giving possession for a fixed period of time (usually 100 years plus for residential), rather than indefinite ownership.
When a leasehold tenure expires, the land and buildings within it, revert to the ownership of the freeholder, unless the lease is extended or the freehold is purchase from the freehold owner.
At the end of the lease the land and buildings revert to the freeholder unless the lease is extended or the freehold is purchased.
Lease length & mortgage eligibility (quick guide)
Every lender sets its own rules, but here’s how the landscape typically looks:
- 85 years+ remaining: Strong lender appetite with mainstream options.
- 70–85 years: Mixed appetite from mortgage lenders, some are OK but others ask for an extension or evidence it will be extended before completion.
- Below 70 years: Many mainstream lenders won’t lend without a lease extension or a specialist solution.
What this means for you: If your lease is borderline length (or under 80 years where costs and valuations get trickier), it’s often cheaper and faster to plan an extension alongside your mortgage application. We’ll confirm the lender(s) most likely to approve your case and whether to extend now or after completion.
New‑build note:
Several lenders set specific expectations on minimum lease length and acceptable ground rent clauses. Example policies require around 85 years at completion, and some lender/programme rules specify 125 years for new‑build flats and 250 years for new‑build houses.
Freehold vs Leasehold: quick comparison
Freehold (you own land + property)
- No lease end date to worry about
- Fewer ongoing charges (you still insure/maintain)
- Usually simpler for lenders
Leasehold (you own for a fixed term)
- Must budget for service charges, ground rent (if any) and buildings insurance via the freeholder/manager
- Lease length and clauses can restrict lender choice and rates
- Extension or buying the freehold can improve value and mortgage options
Unsure which to pick?
The Mortgage Broker can compare lender criteria and total cost of ownership for the properties you are looking at, or we can discuss your scenario whatever you are trying to do.
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If you have a leasehold tenure on a property, it means you own the property but someone else owns the land the property is sitting on. This is most common where flats or apartments are concerned. Since there are several properties that are essentially built on top of one another, it would be impossible for each flat owner to own the land it is built on.
Special cases we handle a lot
- “Almost there” leases (70–85 years): Which lenders accept as-is and when to extend pre-offer.
- Short leases (<70 years): Specialist options, bridging, or extend-then-remortgage paths.
- Coach-house/garage leases: Long leases with usage limits and shared areas—how lenders review the terms.
- Buy-to-let leaseholds: Sub-letting clauses, minimum lease terms and insurance obligations can affect the deal—get us to check early.
How The Mortgage Broker makes this easy
- Rapid lease review: We flag lender red lines (years remaining, rent clauses, restrictions) in plain English.
- Lender matching: Access 130+ lenders and 25,000+ products so your case fits the right criteria first time.
- Joined-up process: Decision in Principle, document checklist, conveyancer intro and (if needed) lease extension strategy.
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The landlord, i.e. the owner of the land, would charge ground rent to all those with leasehold properties on that land. The land would also be leased for a specific number of years. The shorter the leasehold, the less valuable the property would be. This is an important point to note if you are considering getting a leasehold tenure to a property. There is also the question of what might happen when the lease nears its end. There are pros and cons to each type of tenure that relate to responsibilities for each.
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