Leasehold vs
Freehold
There is much confusion surrounding the
subject of leasehold properties - which means
that a person owns the right to occupy a home but not the building
itself - and most people would rather own a freehold property given the
choice - but are there any positives to leasehold? Venture finds out...
More than two million people in Whilst leasehold ownership is very control over their properties.
Britain own property on a leasehold common when it comes to flats, it
Leasehold and freehold both have
basis. This form of ownership dates is far less so in regards to houses.
different positives and negatives
back to a time when all land and
All leaseholds are subject to quite attached to them.
property belonged to the Crown
detailed and sometimes stringent
and was leased to others to live in
Whilst most people have said
requirements as to expenditure
and manage.
that they would rather purchase a
and management including
freehold property, there are some
If you ‘buy’ a leasehold flat, you insurance. RICS publishes official
distinct advantages to leasehold
don’t actually own the property. All guidance on both and it is highly
such as not having to take full
you own is the right to live there recommended that you obtain this
responsibility for maintaining the
for a specified period of time - and take professional advice from
communal areas and if the flat
however much time remains on a Chartered Surveyor.
above starts leaking into your flat,
the lease.
Now, as of the 2002 they will do something about it.
Many leases are granted on a 99- Commonhold and Leasehold
When buying a leasehold
year term while some run for 999 Reform Act, leaseholders have
property, it is absolutely essential
years. Most banks and building the right to get together with their
that you appoint a solicitor and go
societies are happy to lend on neighbours and buy the landlord
through the lease fully and ensure
property that has at least 75 years out, so owning the property
that you understand exactly what
unexpired on the lease. together and exercising real
you are getting yourself into. Some
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