What does the term ‘Fleecehold’ mean?

What is fleecehold

Though a word that have been around and discussed, usually with concern, fairly often we are now seeing a new trend of property appearing with the word ‘Fleecehold’ in the legal paperwork.

So, what exactly does Fleecehold mean?

Typically when you are purchasing a property it will be either leasehold or freehold. Leasehold means you do not own the land the property sits on (be in house or flat) and you are charged an annual fee for the land. Freehold means that you own the property and the land it is on and you have no ongoing fees to pay.

There are about four forms of lease agreements such as a single net lease, double net lease, triple net lease, and ground lease that one can bind in a contract. Irrespective of all the lease would require you to pay some fees annually.

The verb to fleece: “obtain a great deal of money from (someone), typically by overcharging or swindling them.” source Lexico.com

Sometimes though there are alternatives and one is the Fleecehold agreement. This is when you a contract states that you have to pay annual fees (commonly referred to as ‘estate fees’) on the land you own, so though you might have the freehold agreement you are also obliged to pay a third party additional monthly / annual fees.

It is always important to read through contracts of any property purchase and it is even more important to study the sections that tell you what you are purchasing and if any third party elements are part of the purchase (ie leaseholds) then you need to know the full T&C’s including annual fees. Look out for additional / extra / attached notes on freehold that can even stretch out to telling you what restrictions you may have, examples in including what type of vehicle you can park on your front drive to whether or not you can ever be permitted to serve / sell alcohol from your property (these two examples are in our recent property purchase bytheway).

Christopher Walkey

Founder of Estate Agent Networking. Internationally invited speaker on how to build online target audiences using Social Media. Writes about UK property prices, housing, politics and affordable homes.

You May Also Enjoy

Breaking News

Breaking Property News 11/11/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Navigating new legislation in the Lettings sector Paul Starkey, technology and property industry veteran and also advisor for Symple, gives his take on how to better monetise lettings operations. ‘During a housing crisis, the last thing the UK needs is a subsequent catastrophe in…
Read More
how to present your property for sale
Breaking News

Areas in England with the best value for house prices and education, according to new research

Kingston upon Hull has the highest combined score of 75.30 out of 100 for bothhouse prices with adequate value and ‘outstanding’ schools Three Rivers is in second place with a score of 73.73, while Preston takes third place with a score of 72.66 The study created scores by determining areas with relatively low house prices…
Read More
Estate Agent Talk

Why Every UK Estate Agent Needs a Modern CRM to Stay Competitive

Despite their best efforts, many estate agents in the UK are struggling to meet their business goals. What’s holding them back? According to industry experts, one key issue is the absence of an effective CRM (Customer Relationship Management) system. In today’s fast-moving property market, estate agents face numerous challenges—from managing client turnover and tracking leads…
Read More
Home and Living

DeWalt: An Indispensable Helper During Your Move

Moving is a process that many of us experience with a mix of excitement and anxiety. From packing to unpacking, transporting to setting up furniture, every detail requires attention and effort. In such situations, having a reliable helper like DeWalt tools can significantly simplify and speed up the moving process https://www.ukplanettools.co.uk/dewalt/. 1. Packing and Disassembling…
Read More
for sale sign london
Overseas Property

Exploring Homes for Sale in Spain: A Guide for International Buyers

Spain has long been a top destination for international buyers looking to invest in real estate. Its combination of sunny beaches, rich culture, delicious cuisine, and vibrant cities makes it a favorite for those seeking both a holiday retreat and a valuable investment. With a growing market and diverse options, homes for sale in Spain…
Read More
Home and Living

10 Tips for Moving Home

Moving home is an exciting yet challenging experience, requiring careful planning and organization. The moving process can be stressful if not handled properly, from sorting belongings to managing time. These 10 tips aim to make your move smooth and stress-free, helping you easily settle into your new space. 1. Start Planning Early The earlier you…
Read More