There are different types of property ownership when you buy a home in England…
Sole Ownership
If you have sole ownership of a property, it means you are the only person who legally owns it, even if you have other people living with you.
This means that you can make decisions about the property, use it the property, and transfer ownership of it to someone else without needing permission from anyone else. However, you will of course still need to deal with the appropriate parties for things that require planning permission, boundaries, etc.
It also means that you are responsible for the property, any debts secured on it (e.g, a mortgage) and any other fees and maintenance costs.
If you have sole ownership and sell your property, you are normally entitled to all of the money from the profit from the sale. However, some things can affect this, such as if you get a divorce and the court decides to include the sale proceeds of property in the division of assets between you and your ex-spouse.
Shared Ownership
Share ownership is when you buy a share of a property and pay rent to a landlord on the remaining portion of ownership.
Some people using share ownership do something called ‘staircasing,’ where they buy more shares in their home in the future. This means they slowly increase their ownership of the property, meaning lower rent payments (as rent is based on the landlord’s share).
You can find out more about share ownership here.
Joint Ownership
If you have joint ownership of a property, then at least one other person owns it with you, meaning you share the rights and responsibilities of that property.
You can own a property either as joint tenants or as tenants in common.
Joint tenants own the property equally, and if one dies, their share will automatically pass over to the other owner(s). You cannot pass on your share of ownership of the property in your will.
Tenants in common each have a specified share of the property, which can be different for each owner (e.g, one could own 30% of a house, and the other own 70%). This share can be passed on in a will and does not automatically go to the other owner(s) if you die.
Freehold Property
If you own the freehold of a property, it means that you own not just the property itself, but the land that it sits on. There is no time limit on your ownership of the property and its land.
You are responsible for all costs of maintaining your property and land, and you can make changes to the property with proper planning permissions where required.
Leasehold Property
If you own a leasehold property, you own it for a fixed time period, usually between 90 and 999 years. When your lease ends, the property will go back to the freeholder unless you extend it.
Leaseholds are common with flats and maisonettes. With these, you do own your property itself and the space it takes up within the building, but you don’t own the building it’s in. Therefore, you may have to pay maintenance charges.
Some houses are also sold as leaseholds, meaning you would own the property but not the land it sits on, so may have to pay ground rent to the freeholder.
With leasehold properties, you are responsible for any repairs and maintenance to your property, with your landlord normally holding responsibility for the maintenance of the building itself. You will likely need to get the landlord’s permission before making certain changes: this will be set out in your contract.