When buying a property, one of the key decisions you’ll need to make is whether to buy a freehold or a leasehold.
It’s important to understand the differences before you make your decision.
Freehold Property
Freehold property means you own both the property and the land it sits on.
This means you have complete ownership and control over the property, including the right to make any changes or modifications you want, subject to planning permission and other local regulations.
Freehold properties are typically houses, although some flats can be sold as freehold as well.
An important advantage of having a freehold property is the sense of security that comes with complete ownership. You have complete control over the property, and you don’t have to worry about any restrictions or limitations on what you can do with it.
However, this can often mean freehold properties are more expensive. You’ll need to take out building insurance to cover any damage to the property. Additionally, if you live in a freehold property that’s part of a wider development, you may be responsible for maintaining any communal areas such as roads, footpaths, and landscaping.
Leasehold Property
A leasehold property means you own the property for a fixed period of time. However, you don’t own the land it sits on.
Instead, you pay an annual ground rent to the freeholder, who owns the land.
An advantage of leasehold property is that you don’t have to worry about any major maintenance or repair costs, as these are typically covered by the freeholder.
Additionally, leasehold properties are often cheaper than freehold properties, which can be an important factor for first-time buyers.
However, you may be limited in what you can do with the property. You’ll need to get the freeholder’s permission for any major changes or modifications, and you may have to pay a fee for this.
Understanding this difference is key to ensuring you have all the right knowledge when purchasing your property.
If you need advice on purchasing a property, contact us today.