Freehold or leasehold
If you want to buy a house, it’s likely you’ll buy the freehold, meaning you own the property and land it sits on.
If you’re buying a flat, you’ll be buying leasehold, or buying into a share of the freehold.
Benefits of having a freehold
You don’t have to:
- Worry about the lease running out, as you own the property outright.
- Deal with the freeholder (often known as the landlord).
- Pay ground rent, services charges or any other landlord charges.
Buying a leasehold
When you buy a leasehold property, you’ll take over the lease from the previous owner.
So before making an offer you’ll need to consider:
- How many years are left on the lease.
- How you’ll budget for service charges and related costs.
- How the length of the lease might affect getting a mortgage and the property resale value.