What is the difference between a leasehold and a freehold?

When someone has a leasehold, they own the home for a fixed term, but not the property that it sits on, and a freehold describes a person owning the home and the land it is on. With a freehold, there is no term on how long the person can own the property.

Both a leasehold and a freehold are common types of legal home ownership in British commonwealth countries, specifically Wales and England. Many people prefer a freehold because this means that they own the total property and they do not have to worry about paying any annual ground rent. Most people sell whole houses this way.