Share of Freehold: What It Means, Buying One and Extending the Lease

A share of freehold means you own two things: a long lease of your flat, and a share in the freehold of the building with the other flat owners. You are a leaseholder and, together with your neighbours, your own landlord. There is no outside freeholder collecting ground rent or setting the service charge.

Checked 20 October 2026.

How share of freehold works

Most flats in England are sold on a lease, because the law makes it hard to place repair and maintenance duties on freehold flats. A share of freehold keeps the lease but moves the freehold of the building into the owners' hands. That is held in one of two ways:

• Through a company. The flat owners are its members: shareholders, or guarantee members in a company limited by guarantee. Some of them act as directors. The company is the registered freeholder.
• In the owners' own names. The owners are registered on the freehold title together. The law allows up to four legal owners on a title, so this suits small buildings.

Either way, your flat is still held on its own lease. The lease is what you buy and sell, and the share of the freehold goes with it.

Share of freehold, leasehold and freehold compared

• Leasehold. You own the flat for the years left on the lease. Someone else owns the freehold, collects any ground rent, insures the building and decides on major works, within the lease and the law.
• Share of freehold. You still hold a lease, but you and the other owners are the freeholder. You make those decisions together.
• Freehold. You own the building and the land it stands on outright, with no lease and no end date. Houses are usually freehold.

Our guide to freehold vs leasehold explains the difference in more detail.

What it means day to day

• No outside landlord. Nobody outside the building collects ground rent or sets the service charge. Many share of freehold leases have no ground rent, or a nominal one, but check your own lease.
• Shared decisions. The owners agree on repairs, insurance, the service charge and any reserve fund. Where owners disagree, decisions can stall.
• Company duties. If the freehold is held by a company, it has to keep its records and file accounts and a confirmation statement at Companies House each year. The directors are responsible for that.
• The lease still applies. The lease rules on pets, letting, alterations and repairs bind you, and the other owners can enforce them.

Buying a share of freehold flat: what your solicitor checks

Everything we would check on any leasehold flat applies. Our guide to buying a leasehold flat goes through it. On top of that, we check:

• How the freehold is held. Whether it is a company or the owners' own names, and that the seller really holds the share they are selling.
• The company's records. Its articles, register of members and share certificates, its filing history at Companies House, and whether any of its accounts or filings are overdue.
• The transfer of the share. A signed stock transfer form and the seller's share certificate for completion (or, for a company limited by guarantee, the change of membership), and, where the buyer is joining the board, the change of directors. If the owners hold the freehold in their own names, your name is added to the freehold title as well.
• Money and management. The service charge accounts, any reserve fund, the buildings insurance, and any planned major works or disputes between owners.
• The lease itself. Its length, ground rent and terms, and whether it has already been extended.
• Building safety. For a flat in a building in England of five or more storeys, or 11 metres or more high, the Building Safety Act paperwork.

Extending the lease

Owning a share of the freehold does not stop the clock on your lease. The years still run down, and a short lease can affect your mortgage and your sale.

Because the owners are the freeholder, they often agree an extension between themselves: a new, longer lease, often for 999 years, with no ground rent. The other owners or the company's directors have to agree, and your lender has to consent. Many owners extend every lease in the building at the same time, so nobody is left with a shorter one.

The formal statutory route is still available, with the same rights as any other qualifying leaseholder. Our guide to extending a lease explains how that works.

Leasehold law is changing

The Leasehold and Freehold Reform Act 2024 is coming into force in stages. Since 31 January 2025, you no longer have to own a flat for two years before claiming a lease extension. Other changes, including new rules on how lease extensions and freehold purchases are valued, are not in force yet. Checked 20 October 2026 against the government's leasehold toolkit.

Questions people ask

What does share of freehold mean?

It means you own the lease of your flat and a share of the freehold of the building. The freehold is owned by all or some of the flat owners, usually through a company.

Is share of freehold better than leasehold?

It gives the owners control: no outside landlord, and leases that can usually be extended by agreement. In return, the owners carry the work and the cost of running the building, and have to agree with each other. Which suits you depends on the building and the people in it.

Can I get a mortgage on a share of freehold flat?

Usually, yes. Lenders lend against the lease, so they look at its length and terms as they would for any flat. Some lenders also ask about the freehold company.

Do you pay ground rent with share of freehold?

Often not, or only a nominal amount, but it depends on your lease. Any ground rent is paid to the freehold company or the owners, which means to yourselves.

What is commonhold?

Commonhold is a different way of owning a flat. You own your flat outright, with no lease, and a commonhold association of the owners runs the shared parts. Very few buildings use it today. In its March 2025 commonhold white paper, the government said it plans to make commonhold the usual way of owning new flats. That is not in force (checked 20 October 2026).

Is share of freehold the same as shared ownership?

No. Shared ownership means buying part of a home from a housing association and paying rent on the rest. Share of freehold means you own all of your flat's lease and a share of the building's freehold.

Buying or selling a share of freehold flat

Our leasehold and lease extension page explains how we handle a leasehold purchase or sale. For an exact, itemised figure, get a quote for your purchase or contact us and tell us the flat is share of freehold. We confirm the fee in your written quote.

Sources

Leasehold property and the freehold: gov.uk/leasehold-property

Leasehold reform, what is in force: the government's leasehold toolkit for England, published 20 May 2026, checked 20 October 2026.

Commonhold: the government's commonhold white paper, March 2025.

Buying the freehold of your building: gov.uk/leasehold-property/buying-the-freehold

This is general information about share of freehold flats in England, not advice on your lease or your purchase. Leasehold law is changing; check the position that applies when you buy, sell or extend.