What is the difference between freehold and leasehold properties?
Here at Residential Matters, we are often asked by clients what the difference is between a leasehold and freehold property.
In this article, we take a look at what the practical difference are between owning a leasehold and freehold property.
What is a freehold property?
When you own a freehold property, you generally own the property and the land that it is built on outright.
If you buy a freehold property, you will be responsible for maintaining and repairing your property and land.
What are the benefits of buying a freehold property?
One of the main benefits of buying a freehold property is that you can make any changes you like to the property, as long as you comply with planning regulations and any restrictions mentioned in the property title.
You won’t have to deal with a freeholder and you won’t need to pay any ground rent or services charges.
What is a leasehold property?
If you purchase a leasehold property, you will own the property and its land for the length of the lease agreement with the freeholder.
When the lease ends, ownership of the property will return to the freeholder unless you can extend the lease.
What should you consider when buying a leasehold property?
When you buy a leasehold property, you will take over the lease from the previous owner. Before you buy a leasehold property, you should ask the following questions:
- How many years are left on the lease?
- How much is the ground rent on the property?
- Are there any service charges?
Leaseholds are most common in flats where the freeholder will own the building. If you buy one of the flats as a leasehold you will most likely have to pay a service charge for the upkeep of the building. This service charge will often pay for things including:
- Maintaining communal outdoor spaces such as gardens
- Electricity bills for communal areas
- Repair and maintenance of external walls
Buying a leasehold property in Lancashire
In Lancashire and the North West, leasehold properties are common. Many of these are terraced houses held for a term of 999 years. They often contain restrictions but will not normally be subject to service charges.
Here at Residential Matters, our dedicated conveyancers can provide the information you need on the leasehold and offer advice any action you will need to take when buying the property.
Speak to the specialist solicitors at Residential Matters today
Here at Residential Matters, we have a team of conveyancers who are specialists in both leasehold and freehold properties.
When buying a property, it is vital that you have the advice of a legal expert who can provide the information and advice you need.
To talk to us about how our experienced conveyancers can help you, call us now on 01282 695 400.
Or, if you can’t speak to our legal specialists over the phone right now, you can also contact us by completing our quick and simple online contact form.