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Leasehold vs. freehold

What are the pros and cons of buying a freehold property vs. a leasehold property? Does a freehold property appreciate more than leasehold? We are looking to buy a property but getting confused between buying a leasehold modern apartment or a freehold house/flat.

Asked on Jul 8 2011, General in Richmond | Report content

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  • Freehold is always best as you are in charge of your own destiny in so many respects. With a leasehold you are dependant on a third party being involved and charging you for repairs.

    Answered on Jul 11 2011, Report content
  • It is a question that worries many buyers, Freehold is the ultimate title and ideal of you are buying a house or Bungalow. Flats and Maisonettes are generally different, whilst there will still be a freeholder this is often a 3rd party and the flat owners will have long leaseholds (long technically means over 21 years - but in reality leases normally start from 99 years or more) The leaseholders will have to comply to the agreement of the lease, normally to pay an annual Ground Rent, as well as either a service/maintenance charge or on an adhok basis. Also normally the freeholder insures and the leaseholders pay the premium. Simply whatever work the freeholder carries out he can collect from the leaseholders and add a management fee. Always best to check if the freeholder is a rogue freeholder before you buy. Also be aware to extend your lease can be costly if you are the leaseholder although you do have rights under the leasehold Reform Act that protects the leaseholder. There are also rights under the Act for leaseholders in a block to get together and claim the right to manage. Some years ago the Commonhold Act was introduced, Commonhold is a very sensible title, it means that each of the leaseholders own a share of the freehold and have the rights to manage themselves or appoint a managing agent. It is a shame but very few new developments have been sold Commonhold. I think it would add to the value - knowing you are not reliant on a third party freeholder. I hope this helps.

    Answered on Jul 18 2011, Report content
  • Freehold is the best option, as the maintenance charges on leasehold properties are down to the land lord further reducing your return.

    Answered on Jul 25 2011, Report content
  • I would like to enquire how much to ask for the freehold on 124a Shaftesbury Ave Southend on Sea Essex converted 1st floor flat. It has been valued at £230,000 can you please help or direct me in the right direction to get this answered. Many thanks, Susie

    Answered on Nov 17 2014, Report content

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