Generally for leasehold, the building and the land are owned by the freeholder (otherwise known as the landlord/lessor), who grants someone else the right to use the property for a period of time. This is done by granting a lease. The person it is granted to is called the lessee or the tenant. This type of ownership is called leasehold.
At present, If you buy a flat, you will always be buying a leasehold interest. However, a new tenure known as commonhold was introduced in September 1994. This tenure is for interdependent properties and allows the flat (or unit) for example, to effectively be held on a freehold basis. The manner in which commonhold works is fundamentally different from leasehold and as such, advice on this tenure should be sought from Her Majesty's Court Service, Land Law Team, International and Property Branch Civil Law and Justice Division, 4th Floor, Selbourne House, 54 Victoria Street, London, SW1E 6QW.
If you buy a house, you will nearly always be buying the freehold - although with some houses you may be buying a leasehold. These houses are predominantly in the North and South West of England, although some are in London and other areas of the country. This section tells you what rights you have if you own a leasehold, either to extend the lease, or to buy the freehold itself.
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