Leasehold property ownership involves acquiring the right to occupy land or a building for a specific period, as defined in a lease agreement. This differs from freehold ownership, where the buyer owns the property and the land outright. For example, a buyer might purchase a leasehold flat in a city center building, granting them the right to reside there for 99 years.
Leasehold ownership can present certain advantages, including lower initial purchase prices compared to equivalent freehold properties. This factor can make property ownership accessible to individuals who might otherwise be unable to afford a home in a desired location. Historically, leasehold systems have allowed for efficient management of larger estates and have provided landlords with control over property maintenance and standards.