Buying A Leasehold House
If you own the freehold of your home, it means that you own the structure and the land it sits on. If your residential or commercial property is leasehold, you own the residential or commercial property however not the building or land and should pay ground rent to the freeholder.
Freehold vs leasehold: the crucial distinctions
Do you understand what is suggested by a freehold or leasehold residential or commercial property? Experienced estate representative, Ian Harris helps explain the crucial distinctions.
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What does leasehold suggest?
You are acquiring a lease from the freeholder for the right to live in the residential or commercial property for a set variety of years. You will not technically own the residential or commercial property outright, the freeholder (or property manager) will continue to own the residential or commercial property and the ground it sits on. Leasehold is commonplace when purchasing a flat or apartment as it sits within a larger building.
The variety of leasehold houses has actually however grown in the last few years, especially with brand-new builds that are sold straight through the designer.
Recent modifications to the law
The Leasehold and Freehold Act 2024 is now law, but individual parts of the Act are being carried out one at a time so not everything has been done yet. You can see the progress of the changes here. Eventually there will be a ban on the sale of brand-new leasehold flats, making Commonhold the brand-new default tenure rather, where each unit-holder owns the freehold of their home.
If you own the freehold of your home, it means that you own the structure and the land it sits on. If your residential or commercial property is leasehold, you own the residential or commercial property however not the building or land and should pay ground rent to the freeholder.
Freehold vs leasehold: the crucial distinctions
Do you understand what is suggested by a freehold or leasehold residential or commercial property? Experienced estate representative, Ian Harris helps explain the crucial distinctions.
Register for our video channel
Ensure you stay up to date with our video content as it's published. By subscribing you will be notified as quickly as new videos are released.
What does leasehold suggest?
You are acquiring a lease from the freeholder for the right to live in the residential or commercial property for a set variety of years. You will not technically own the residential or commercial property outright, the freeholder (or property manager) will continue to own the residential or commercial property and the ground it sits on. Leasehold is commonplace when purchasing a flat or apartment as it sits within a larger building.
The variety of leasehold houses has actually however grown in the last few years, especially with brand-new builds that are sold straight through the designer.
Recent modifications to the law
The Leasehold and Freehold Act 2024 is now law, but individual parts of the Act are being carried out one at a time so not everything has been done yet. You can see the progress of the changes here. Eventually there will be a ban on the sale of brand-new leasehold flats, making Commonhold the brand-new default tenure rather, where each unit-holder owns the freehold of their home.