If you’ve spent any time browsing flats for sale recently, you’ve probably noticed the phrase “share of freehold” popping up more and more in listings. It’s not new — the concept has been around for decades — but it’s having something of a moment. Between rising awareness of leasehold pitfalls and the reforms working their way through Parliament, more buyers are asking what it actually means, and whether it’s something they should be looking for.
At E.R.E Property, we field this question — what does share of freehold mean, and is it worth looking for — from buyers, sellers and long-term investors on a near-weekly basis. So we thought it was time to set out, in plain English, what share of freehold is, how it differs from the leasehold and freehold arrangements you already know, and why it’s become such a hot topic in 2026.
What does “share of freehold” mean?
Shared freehold — sometimes called “share of freehold” — is a form of ownership that typically applies to flats. You still hold your individual flat on a lease, exactly as a standard leaseholder would. The difference is that you, together with the other flat owners in the building, also jointly own the freehold: the building itself and the land it sits on.
In practice, this usually happens in one of two ways. Either the freehold is held directly in the names of a handful of flat owners, or — more commonly in larger blocks — a company is set up specifically to hold the freehold, with each flat owner allocated a share. Either way, the effect is the same: instead of answering to an external landlord, you and your neighbours collectively become the landlord.
Share of freehold vs leasehold: what’s the difference?
For a straightforward comparison, here’s how the two ownership types stack up against each other. If you’re currently a leaseholder wondering whether collective enfranchisement could be an option for your building, our team can talk you through the eligibility criteria.
Share of freehold vs full freehold
It’s also worth being clear about how share of freehold differs from owning a freehold outright, which is the arrangement most people associate with buying a house.
The key point is that owning a share of the freehold doesn’t turn your flat into a freehold property in its own right. Your lease still exists, and its terms still govern how the building is run day to day — it’s just that you now have a genuine seat at the table when decisions are made, rather than being on the receiving end of them.
Why this matters more than ever in 2026
Interest in share of freehold has been building for a good reason. The Leasehold and Freehold Reform Act 2024 has already started reshaping the enfranchisement landscape — the process by which leaseholders can club together to buy their freehold. Reforms that have taken effect include scrapping the previous two-year ownership requirement before leaseholders can apply, and raising the limit on how much commercial space a building can have before it’s excluded from the process. Further changes, including the removal of “marriage value” from lease extension calculations, are still working their way through implementation, so the full financial picture is expected to keep evolving over the next year or two.
On top of that, the government has published its draft Commonhold and Leasehold Reform Bill, signalling a longer-term ambition to make commonhold, a related but distinct ownership model — the default for new flats. All of this points in one direction: more control, and eventually more ownership rights, ending up in the hands of flat owners rather than third-party freeholders.
What our clients are telling us
We’re seeing this shift play out directly in the conversations we’re having with our clients. Buyers are increasingly prioritising blocks that already have — or have a realistic route to — a share of freehold, and existing leaseholders are asking us far more often about collective enfranchisement than they were even eighteen months ago.
“Many of our longer-term investors have been through the frustrations of leasehold ownership — the unpredictable service charges, the drawn-out lease extension negotiations, the sense of having no real say in how their building is run” says Helen Mercer-Jones, Managing Director of E.R.E Property.
“What we’re hearing now is a genuine welcome for these reforms. Clients who’ve moved to a share of freehold consistently tell us it’s transformed their relationship with their property, and we expect that trend to keep gathering pace as the remaining provisions of the 2024 Act come into force.”
Is a share of freehold right for you?
Shared freehold tends to suit buyers and investors who value having a direct say in how their building is managed, and who are comfortable working collaboratively with co-owners on decisions ranging from insurance to major repairs. It generally makes a flat more attractive to future buyers too, since it removes much of the uncertainty that comes with an external freeholder.
That said, it isn’t without its own considerations. Co-owners need to be able to agree on budgets, contractors and priorities, and taking on freeholder responsibilities — even shared ones — is a genuine commitment. It’s rarely a decision to make without proper advice.
Frequently asked questions:
Do I still pay ground rent if I have a share of freehold?
Usually not. Because you and your co-owners collectively are the freeholder, there’s typically no ground rent to pay — though you’ll still contribute to the cost of maintaining and insuring the building.
Is share of freehold better than leasehold?
For most buyers, yes — it generally gives you more control over service charges, insurance and lease extensions, and can make a flat easier to sell. It does mean taking on shared responsibility for the building alongside your neighbours, so it suits buyers comfortable with collective decision-making.
How do I get a share of freehold if I’m currently a leaseholder?
The main route is collective enfranchisement, where at least half of the qualifying leaseholders in a building join together to buy the freehold from the existing landlord. Recent reforms under the Leasehold and Freehold Reform Act 2024 have made this more accessible for many buildings.
Does share of freehold mean I own my flat outright?
No. You still hold your individual flat on a lease; the share of freehold applies to the building and land, not your specific flat. In practice this still gives you far more say than a standard leasehold arrangement.
How E.R.E Property can help
Whether you’re weighing up a share-of-freehold flat as a buyer, exploring collective enfranchisement with your fellow leaseholders, or simply want to understand how the current wave of leasehold reform might affect a property you already own, our team is here to talk it through.
Get in touch with E.R.E Property today to discuss your options, or explore our property management services to see how we support share-of-freehold buildings day to day.
This article is intended as general guidance and does not constitute legal or financial advice. Leasehold and enfranchisement law is subject to ongoing change; we’d always recommend speaking to a specialist solicitor before making a decision based on the current legal position.
