If you are buying a property, especially for the first time you might not have come across the terms ‘Leasehold’ and ‘Freehold’ before, so our property experts explain the difference:
A Landlord, freeholder or Lessor is someone who owns the lease on a property.
A leaseholder, tenant or Lessee is someone who pays the ground rent to the freeholder.
If you buy a property with a ‘Leasehold’ it means that you will be renting the ground that the property stands on from a freeholder, or Landlord. A property with a leasehold would normally be a flat or a building with multiple units. Most properties for sale will come with a lease of between 99-125 years, if it’s any less than this you will probably need to negotiate a price with the freeholder before continuing with a sale. In return for the lease, the Landlord will normally be responsible for keeping up the maintenance of the building.
The amount payable for rents can vary but normally range between £50-£250. In return the Landlord will give the tenant the right to occupy the property for the period of the lease. For first-time buyers buying a property with a leasehold rather than a freehold can seem more attractive, as these are usually cheaper than buying a property with a freehold.
If you buy a property with a freehold, this normally means that you will not only be buying the property but also the land the property is situated on – most houses are brought with a Freehold.
If you would like any more advice on buying a property with a freehold or a leasehold just pop into your local branch of Intercounty for a coffee and a chat or call our team on 0330 1598017.