Freehold or leasehold

By: Just 4 Mortgages Ltd0 comments

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.

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