What is the difference between a freehold and a leasehold?
Asked on Jun 6 2014,
House Prices in Liverpool |
Freehold: you own both the building and the land forever.
Leasehold is more complicated, it is a very long-term tenancy, the original term is typically 99 years or more. It is the normal arrangement for flats as it enables the necessary obligations to maintain the whole building to be imposed and the costs to be apportioned. A lease with less than 70 years may be difficult to mortgage. On the other hand a lease of 999 years and a share of the freehold is near enough a freehold excepting that there will be continuing obligations and costs of contribution to the buildings maintenance
Web reference: http://www.lease-advice.org/publications/
Answered on Jun 6 2014,
In a Freehold the freeholder of the property owns the building and the land on which it is built. As the name Leasehold implies, a leaseholder effectively buys protected rights to live in the property for a period of time (typically 99 years). The Freeholder of the leasehold property retains title and ownership of the building and the land on which it is built. When the lease expires the Freeholder can lease the property again and the existing leaseholder must either vacate or extend / renew the lease
Answered on Jun 21 2014,
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