In Property Law UK there are two main estates in land which are Leasehold and Freehold. Many people are confused as to the distinction between the two and worry that if they are buying a Leasehold property that their rights are somehow less than that if they were buying a Freehold property.
A Freehold Property means you own the property outright including the land it sits on. In other words, only you have rights to occupy or make use of that land. That property is yours. Most houses are freehold but some might be leasehold – usually through shared-ownership schemes.
Some of the benefits of having a freehold are that you don’t have to worry about the lease running out, as you own the property outright and you don’t have to deal with a landlord, pay ground rent, service charges or any other landlord charges.
A Leasehold property means that you own the property and its land for a fixed term as you will take over the lease from the previous owner. Like a Freehold, you own the property but the difference is that after a certain amount of time you would pass your ownership back to the Landlord therefore, it is useful to see how many years are left on the lease.
Whether it is a Freehold or Leasehold, your rights are broadly the same however, with a Leasehold there may be more restrictions on what you can do with the land than you would find on a freehold property. For example, if you were buying a block of flats there might be rules to make sure that you don’t do anything that would annoy your neighbours of affect the common areas of the block. In addition, for a leasehold you will have to budget for service charges and related costs.
06 Dec 2018
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