Traditionally, most houses were sold as freehold, giving buyers full ownership of the property and the land it stands on.

In recent years, though, some housebuilders began offering houses on a leasehold basis instead.

This shift has caused concern among both homebuyers and the government, and it’s something you should be fully aware of when buying a home in York.

Why Some Houses Are Sold as Leasehold

Some of the UK’s major developers were criticised for putting profits ahead of what’s most suitable for homeowners.

During the height of government-backed housing schemes, a number of builders began selling houses as leasehold, which meant buyers didn’t automatically own the land beneath their home.

At the same time, these developers were accused of ‘land banking’ holding onto plots until market conditions improved, rather than releasing land for immediate use.

Within the industry, it’s not uncommon for land ownership to transfer within large development companies.

Often, these transfers come with leasehold terms attached.

While developers may say that both leasehold and freehold options are available, buyers have often found that leasehold terms were presented as the default, especially on new-build estates.

Concerns Raised By Leasehold Homeowners

Many homeowners began raising concerns once they understood the long-term costs tied to their leasehold agreements.

Some were shocked to find that making even small changes to their property, such as adding an extension or replacing windows, required written permission from a leasehold management company, often at a high cost.

What Happens If You Didn’t Know Your House Was Leasehold?

If you own a house and only recently realised it’s leasehold, it’s worth reviewing the information you were given at the time of purchase.

You should have been made fully aware of the leasehold terms before signing any contracts.

If you feel that your solicitor didn’t explain this clearly, you may want to speak to them directly to understand what happened.

You can contact the freeholder to ask about purchasing the freehold at any point.

While this is a legal option, it can be costly and doesn’t always lead to a quick resolution.

That’s why it’s so important to understand the difference between freehold and leasehold at the outset of any property purchase.

Private Roads, Shared Spaces, and Service Charges

Even when a property is freehold, many new developments come with service charges that cover the maintenance of shared areas.

This includes roads, green spaces, or lighting in communal areas, especially when the local council has not agreed to adopt the infrastructure.

These responsibilities are usually passed to private companies who manage the upkeep, with costs shared between homeowners.

Things To Know Before Buying A Leasehold Property In York

Buying a leasehold house isn’t necessarily a bad thing, but it does come with extra responsibilities.

Before you commit, it’s essential that your solicitor explains the lease terms clearly, including any ground rent charges, restrictions on alterations, and future costs.

It’s easy to get caught up in the excitement of buying a new home, especially if it’s your a first time buyer in York.

That’s why we always encourage homebuyers in York to take their time, ask plenty of questions, and be sure they understand what they’re signing up for.

As a mortgage broker in York, we help you understand all aspects of your purchase, including how the property type might affect your mortgage options in the future.

Date Last Edited: September 3, 2025