Leasehold and freehold are two very different ways of owning residential property in England and Wales. Most people understand the basic concept behind freehold – but far fewer people really appreciate what owning a leasehold property really means.
1. Leaseholders don’t actually own their property. They just buy the right to live there for whatever time period is stated on the lease, subject to some conditions.Depending on the terms of the lease, they will probably have to get the permission of the freeholder if they want to make certain structural amendments or improvements to their property.
2. Most flats bought and sold in the UK are on a leasehold basis.
3. On rare occasions, houses can also be leasehold, although it is much more common for houses to be freehold instead.
4. The owner of the property is the freeholder, who is ultimately in charge.
5. If the lease expires, the leaseholders might have to leave their homes, or might have to pay rent to the freeholder. There is very little long term security in this situation – just a possibility of retaining an ongoing temporary or periodic lease.
6. There are more than 2 million leasehold properties in England alone, and the number is growing every day. Since the start of the 21st century, far more leasehold flats and apartments have been built than houses.
7. People living in a leasehold property pay an annual or monthly charge to the freeholder towards the upkeep of the building. The freeholder is responsible for arranging maintenance of the block unless the leaseholders have joined together to either buy the freehold of the block or exercised their right to manage
8. Properties with short leases are worth a lot less than properties with a long lease. This is because that if the lease expires, the property returns to the freeholder who can then sell it again.
9. .A shorter lease means that the freeholder is able to charge leaseholders more to extend the lease.
10. The answer, of course, to short lease problems is a lease extension – and don’t forget, you have the legal right to extend your lease term by an additional 90 years – whether your freeholder likes it or not.
Thinking of a Lease Extension? Contact us today
Our team are genuine leasehold extensions experts – so for great advice on extending your lease, please contact us today;
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