Leasehold enfranchisement
Generally, homeownership in England and Wales consists of two tenure types: freehold and leasehold. Freehold is ownership over the land and the property built upon it, which lasts forever, and generally gives extensive control over the property. Leasehold provides time-limited ownership (for example, a 99-year lease), and control of the property, which is shared with, and limited by the landlord. Unless a leaseholder extends their lease, the property will revert to the landlord, and ultimately the freeholder. The balance of power between leasehold owners and their landlord (who may or may not also be the freeholder) is governed by the terms of the lease and by legislation. The residential leasehold sector represents one in five (4.98 million properties) of the English housing stock and one in six in Wales (approximately 235,000).
	Qualifying leaseholders have statutory rights to extend their lease or buy the freehold (either individually for houses, or collectively with fellow leaseholders for blocks of flats). The process of extending a lease or buying the freehold is often referred to as enfranchisement. When a leaseholder exercises their right to extend their lease or buy the freehold, they must pay a price to their landlords (except for lease extensions of houses, where a ‘modern ground rent’ is paid instead). In addition, leaseholders in a building may have the right to take over its management without buying the freehold (which is known as the right to manage, or "RTM"), or to seek the appointment of a new manager.
	In the leasehold system, the ownership structures can be complex. In addition to freeholders, intermediate landlords and managing agents also play a role. For example, where one is appointed, it is a managing agent's job to manage the property in accordance with the terms of the lease and statutory requirements on behalf of the landlord. Sometimes there might be a chain of leases in a building, sitting like rungs on a ladder, with a freeholder at the top, leaseholders (such as those qualifying for enfranchisement rights) at the other end, and one or more leases - called "intermediate leases" - in-between. There might also be leases that do not act as landlords to leaseholders, for example ones covering the common parts.
	Until recently, landlords could sell a new lease on a property subject to an ongoing obligation to pay a ground rent. A ground rent is a regular payment which a leaseholder must make to their landlord, which is unconnected with any services that the landlord might provide (for example, building maintenance). From 30 June 2022, the Leasehold Reform (Ground Rent) Act 2022 prohibited the charging of a financial ground rent for most new regulated leases. However, the 2022 Act did not alter the position for existing leaseholders. Ground rents, and any potential increases through rent review provisions set out in the lease, are factored into the calculation of the price for lease extension and freehold acquisition claims. After a statutory lease extension of a flat, the leaseholder is only liable to pay a peppercorn ground rent, whereas in a lease extension of a house, a financial ground rent is due.
	Most houses are sold as freehold, although an increasing number of freehold homeowners live on estates ("freehold estates") where the communal areas are owned, paid for and maintained privately, rather than by the local authority. Freehold homeowners are required to contribute towards the maintenance of the shared areas through payment of an estate rentcharge or equivalent contribution. There are an estimated 20,000 freehold estates in England.