There are two main types of property in England and Wales, freehold and leasehold property. As a leasehold property owner you own the property, however, the land on which it is built belongs to the freeholder. The owner of a leasehold property has purchased the right to use that property for the period covered by the term of the lease: this term can run to around 125 years. If the leasehold expires, ownership technically passes to the freeholder. However, The law gives leaseholders of residential property the right to extend the Term of their leases. According to the Leasehold Advisory Service, in England and Wales, the current property law requires that all flats are leasehold, with some exceptions such as those which are sold with a share of the freehold via a residents management company. Houses are usually sold as freehold property because it is apparent that the land and property it is built on can be owned by a single owner. However, it is becoming more common to find new-build houses being sold as leasehold property.