Leasehold Share: What It Means and How It Works in UK Property

When you buy a leasehold share, a form of property ownership where you own a portion of a home and pay rent on the rest. Also known as shared ownership, it’s designed for people who can’t afford to buy a home outright but still want to get on the property ladder. This isn’t rent-to-own, and it’s not equity sharing with investors—it’s a specific housing scheme backed by housing associations and approved developers in the UK.

A leasehold share, a legal arrangement where you own a percentage of a property and pay rent on the portion you don’t own. Also known as shared equity, it’s tied to a long-term lease, usually 99 to 125 years. You pay a mortgage on your share and rent on the rest, often to a housing association. The more you own, the less rent you pay. You can buy more shares later—this is called staircasing—but you’ll always be bound by the lease terms, which include restrictions on renovations, subletting, and selling. Many people confuse this with joint ownership, but it’s different. In joint ownership, two or more people own the whole property together. With a leasehold share, you own part, and a landlord owns the rest.

You don’t get dividends. You don’t earn money from your share. You pay for it—mortgage, rent, service charges, and ground rent. It’s not an investment vehicle; it’s a stepping stone. People use it to build equity slowly, often because they can’t save enough for a 20% deposit on a full property. The scheme works best for first-time buyers with steady income, good credit, and long-term plans. But it’s not for everyone. If you want freedom to renovate, rent out your place, or sell quickly, you’ll hit walls.

Leasehold shares come with hidden costs: insurance, maintenance fees, and sometimes escalating ground rents. Some leases have clauses that make staircasing expensive. Others limit how much you can buy at once. And if you fall behind on rent, the housing association can take action—even if you’re keeping up with your mortgage.

What you’ll find below is a collection of real guides, breakdowns, and warnings from people who’ve been through it. We cover what 100% ownership means after a leasehold share, why landlords avoid pets in these homes, how much you can really afford on a $70,000 salary, and the three biggest downsides most people don’t talk about until it’s too late. There’s no fluff. Just what you need to know before you sign anything.