Updated 22 July 2026
Short answer – Leasehold is for a fixed period of time and conditional on performing the covenants in the lease. Freehold ownership is ‘forever’ or until the title is cancelled by an cancelling event, i.e. there is no survivor heir who is capable of holding the title. All land ownership is conditional, but freehold land has fewer conditions than leasehold – although with the spread of the “estate rentcharge” the boundary between leasehold and freehold is much reduced.
Table of Contents
A short article with a surprisingly simple answer.
The big difference,
The only thing you need remember is this:- positive covenants apply to leasehold properties but not to freehold properties – bar some minor exceptions (like rent charges which are particularly onerous, or implied covenants to pay for maintenance of easements). It is the reason why you have to pay rent to your landlord, insure your house, repair your commercial building and keep it in good condition etc etc. If you fail to perform your positive covenants you can have your lease terminated and you can be evicted.
Sure, there are all kinds of leases. Assured shorthold tenancies, commercial leases within the landlord and tenant act, commercial leases outside of the landlord and tenant act, tenancies at will, agricultural leases, lease of rights and so on. These are all just types of leases which you may or may not want – and – they can be confused for one another quite easily. But the thing all the leases have in common (which does not apply to freeholds) is whoever owns the lease has to perform the positive covenants – the most common positive covenant is the covenant to pay rent.
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Law of Property Act 1925 Section 1 – the definition of freehold and leasehold titles