One of the first problems people come across when buying a house is understanding the difference between leasehold and freehold. Fortunately it's often quite easy to understand though the benefits and value of the different options is sometimes harder to get your head round.
Freehold
Flats
When you are a freeholder you own the exclusive rights to both the building and the land on which it sits. Nobody else has a claim to that land and you can do with it as you please within planning laws and legislation. It's this autonomy that make freehold so appealing, once the property is purchased there are no additional or ongoing costs to and land owner and you can make changes and alterations to the property and land as long as you don't upset anyone in the planning department of the local council.
One downside to this freedom is you have total responsibility for any costs or repairs required for the building, when in a leasehold sometimes this bill can be paid by the freeholder or spilt amongst other leaseholders if you are living in a flat or converted house.
Also it's possible to secure leasehold contracts which last up to a thousand years when you compare a lease of this length with a freehold it's sometimes difficult to account for the additional cost that comes with a freehold property.
Leasehold
When you've purchased a house or flat with leasehold you only own the right to live in that house and flat rather than the land itself. In certain circumstances the clauses in the lease can alter and change what you are able to do with the building and it's often difficult tom compare leases like for like as some are more flexible than others.
Leases last for a set period of time; while most will be over 75 years if yours is shorter you'll find it difficult to secure a mortgage with most well known lenders. Often it's possible to negotiate a lease extension as part of your purchase but be warned this can incur additional costs.
Also once you've purchased a leasehold property you can incur additional costs from the freeholders both as one off events and ongoing charges. These can include ground rent, service charges and other management fees.
There are pros & cons to both options but be sure to fully understand the benefits & costs of both before making your final decision.
Freehold Vs Leasehold - The Difference Between Leasehold & Freehold
Avon Barksdale writes articles for News on the Block a world leading resource for people living in and buying flats. Their magazine and website also contains invaluable infromation about the differences between Leasehold & Freehold [http://www.newsontheblock.com/categories/20060719_3]