There's often confusion over the difference between freehold and leasehold, with some homeowners complaining of being mis-sold the latter, leading to unexpected costs further down the line.

If you purchase a property as a leasehold, you'll usually be required to pay annual ground rent, which, on average, costs between £200 and £500 per year. How much you pay will depend on the property you’re purchasing, so it’s worth finding out before signing on any dotted lines.

It's also worth noting that ground rent was banned in England and Wales on new leases on homes purchased after 30 June 2022.

Budget for these 20 hidden costs when buying your first home