When buying or selling a property, one of the most important, and sometimes overlooked, aspects is the tenure of the property. Tenure refers to the legal framework under which land or property is owned or occupied. It defines your rights, your responsibilities and, in some cases, your financial obligations.
Property tenure describes the legal way land or property is owned in England and Wales.
Understanding tenure at the outset of a transaction helps avoid surprises later. It also allows buyers to budget properly and sellers to prepare for the information that will be required during the conveyancing process. In this guide, we explain the key types of tenure in England and Wales and explore recent developments that may shape the future of property ownership.
Freehold
If a property is freehold, you own both the building and the land it stands on outright, with no time limit on your ownership. Freehold properties are most commonly houses.
However, even with freehold properties, particularly on modern new build estates, there may be estate charges for the maintenance of communal areas such as roads, green spaces, or drainage systems. It is important to identify these at an early stage, so buyers understand any ongoing financial commitments.
Flying Freehold
You may also come across the term flying freehold. This applies where part of one freehold property extends over or beneath another property, for example, a bedroom built over a shared alleyway or a basement extending beneath a neighbouring house. Flying freeholds are most often found in older terraced houses or converted buildings. They are not uncommon, but they do require careful legal consideration.
Leasehold
Leasehold ownership means you have the right to live in a property for a fixed term under a legal agreement known as a lease. Lease terms commonly range from 99 to 999 years.
With leasehold:
- You own the property (for the term of the lease).
- You do not own the land.
- You may be required to pay ground rent and service charges.
- Ownership reverts to the freeholder once the lease term expires.
Most flats are leasehold, although occasionally houses are sold on this basis.
Leasehold transactions often take longer than freehold transactions because additional documentation and information must be obtained from the freeholder or managing agent. This can include service charge accounts, buildings insurance details and leasehold management packs.
Leasehold with Share of Freehold
In some buildings, flat owners may also own a share of the freehold collectively.
This arrangement gives residents greater control over the management and maintenance of the building and often removes the requirement to pay ground rent. Although still legally leasehold (as each flat is held under a lease), having a share of freehold can offer increased influence and flexibility for owners.
Commonhold
Commonhold was introduced in 2004 as an alternative to leasehold for multi-occupancy developments.
Under commonhold:
- Each unit owner owns the freehold of their individual property.
- A commonhold association (made up of the unit owners) owns and manages the shared parts of the building.
Despite being available for over 20 years, uptake has been extremely limited, with fewer than 200 commonhold developments in England and Wales.
However, change may be coming.
In January 2026, the UK Government published a draft Commonhold and Leasehold Reform Bill aimed at reforming leasehold and promoting commonhold as the default tenure for new flats. Proposals within the draft Bill include:
- Encouraging commonhold as the standard structure for new developments.
- Capping ground rents.
- Increasing transparency around service charges.
- Reforming aspects of forfeiture.
The consultation period is currently open and due to close on 24 April 2026. This is an evolving area of law, and any reforms could significantly impact how future properties are owned and managed.
Why Tenure Matters
Tenure affects:
- Your long-term rights and responsibilities.
- Your ongoing financial commitments.
- The complexity and timing of your transaction.
- The information required during conveyancing.
Understanding the structure of ownership from the outset allows you to move forward with clarity and confidence.
If you would like advice about a freehold or leasehold property transaction, the conveyancing team at Priory Law would be happy to help.
As Lucy explains:
“Tenure isn’t just a technical detail; it shapes how you own and manage your property long term. Taking the time to understand it at the beginning of a transaction can prevent uncertainty later and ensures clients are making fully informed decisions.”
You may also find it helpful to read our guide explaining what happens after exchange of contracts and on completion.
Key Questions About Property Tenure
What is property tenure?
Property tenure describes the legal way land or property is owned or occupied in England and Wales. The most common types are freehold, leasehold and commonhold.
What is the difference between freehold and leasehold?
Freehold means you own the property and the land outright with no time limit. Leasehold means you own the property for a fixed period under a lease agreement with the freeholder.
What is commonhold?
Commonhold is a form of ownership where each property owner owns the freehold of their unit and jointly owns and manages the shared parts of the building with other owners.
Will leasehold be abolished?
The UK Government has proposed reforms that could increase the use of commonhold for new developments, but leasehold remains the most common form of ownership for flats.
About the Author – Lucy Wyatt
Lucy Wyatt is a Solicitor at Priory Law, specialising in residential property transactions. Lucy obtained a First-Class Honours Law degree from Swansea University before completing the Legal Practice Course at the University of Law in London. She trained with a regional Sussex firm and qualified into residential property in May 2020.
She has extensive experience in freehold and leasehold sales and purchases, remortgages and informal lease extensions. Lucy is known for her clear communication, meticulous approach, and commitment to client care. She takes pride in ensuring her clients feel supported and informed at every stage of their transaction.
About Priory Law
Priory Law is an outstanding conveyancing firm providing expert property law services throughout England and Wales. Led by Anne-Marie Fowler, the team is recognised for their deep expertise, proactive communication, and exceptional client care.
At Priory Law, we combine experience with innovation to deliver a seamless, jargon-free service that puts our clients first. Our dedication to transparency and customer satisfaction is reflected in our growing number of five-star reviews on Google and Review Solicitors – a testament to the trusted reputation Priory Law has built within the conveyancing industry.