Archive for the ‘buy freehold’ Category

Some Important Differences Between Freehold And Leasehold Property

Wednesday, May 2nd, 2012

When buying or selling property it is important to have a reasonable understanding of the basic laws governing property ownership.
For many people the difference between Leasehold and a Freehold property is unclear. This can become an isue if they have an opportunity to either extend their lease or actually purchase the property.

Leasehold:
Leasehold is the method of owning property (usually a flat) for a fixed term but not the land on which it stands. Possession of the property will be subject to the payment of an annual ground rent. When the lease eventually expires, the ownership of the property reverts back to the freeholder.
The lease normally includes enforcement covenants, rights of way and access, repairing and maintaining covenants, details of ground rent.
There may be a opportunity if you are in agreement with the Freeholder at a specified cost.
A service charge is normal but is not essential; some apartment blocks have an independent managing agent employed by the Freeholder.
Lease lengths vary and most common are 99 years or 125 years. Mortgage lenders prefer there to be a minimum of 50 years left at the end of a mortgage term (i.e. 75 years in total).

Freehold:
Freehold will give you outright ownership of the property and the land on which it stands.ie if you make a you will own the home, the land it is built on, and you will have the right to live there for as long as you please.
You can make moderations to the property within the limits of the law and planning restrictions. You may be required to get permission to make structural changes, particularly with listed buildings (old buildings). The majority of houses are sold freehold. Apartments can be sold freehold, but very rarely, they’re usually leasehold. However, flats are increasingly becoming Freehold because of new legislation that is now making it easier for leaseholders to .

Technorati Tags: , ,


The swf export creates an interactive flash file, phonetrackingapps.com but it would have been great to see support for svg as well