What is the difference between Leasehold and Freehold ?

What is the difference between Leasehold and Freehold ?

✨ When you buy a leasehold property, you are ownership of the property and not own the land the flat sirs on or the fabric of the building including the roof and external walls.
The lease agreement will state the number of years left on the lease.
When the lease ends, ownership returns to the freeholder, unless you can extend the lease.

About Leasehold :
– Length of the lease :
A flat’s original lease duration is likely to be a long period as 99 years or 125 years and can be as 999 years.
Leases with 80 years or fewer are considered short.
However, since Government reforms announced in 2021 make it cheaper and more accessible for leaseholders to obtain lease extensions.
– Service charges :
The landlord or managing agent will impose a service charge to cover the costs of maintaining the building’s structure and the communal areas.
– Ground rent :
The fee payable to the landlord on an annual or half-yearly basis is Ground rent.

✨ When you buy a freehold property, you are ownership of the building and the land it sands on.

Benefits of Freehold :
The owners can make any alterations to the property (must respect adhere to planning or obtain listing building consent).
There are no ground rent and services charges pay.
The freeholders are not reliant on anyone else to maintain the building.

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