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Freehold or Leasehold.

I currently live in a leasehold property on a buy/rent basis and own 40%. I have the opportunity to buy the property outright (100%) but only on a leasehold basis. The owners will not sell the freehold. What are the pros and cons of only having the leasehold and should the value of the property be less if I am only buying the leasehold? Any guidance will be much appreciated.

Asked on Jul 26 2013, General in Nottingham | Report content

Answers (1)

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  • Hi Sec3mitchdr, In short, the best option is always freehold, as you then have absolute rights over everything to do with your property, but leasehold is still a decent option, providing that the duration of the lease is still reasonably lengthy. One of the downsides, for example, of buying leasehold is if the lease is running lower. If you are looking to sell and the lease has less than 70 years left on it, then buyers may struggle to find a mortgage provider who will approve their loan application to buy it. Another negative is the fact that there can be certain rules. For example, if you live in a block of homes then you might not be able to put down hardwood floors, while you can also be billed if there are maintenance works that need to be carried out on the building and any fittings. However, you shouldn't let this put you off. As long as you do your homework, then leasehold is still a great way to buy your home.

    Answered on Jul 31 2013, Report content

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