There is always a lot of information on the internet warning you about buying a leasehold property so here is a guide as to what the difference is between leasehold and freehold and why leasehold ownership makes sense for some types of properties.
The main differences between freehold and leasehold are as follows:-
1. leasehold you do not own the property you in fact lease it for the number of years stated in the lease (there is however a statutory right to extend this);
2. you will frequently have to pay rent to the landlord;
3. you will frequently have to pay service charges to cover for the maintenance of shared facilities such as shared gardens , lifts and any other communal areas within the building ;
4. the lease will provide rules as to how the tenants must or must not act for example not to keep any pets or play loud music. If these rules are breached , it is possible for the landlord to forfeit the lease which would result in you losing your property;
So why have a leasehold property? If the property you are buying is a flat then leases provide important rules and rights for the tenants such as rights of support from the other flats and the building or rights of way over the stairs. The lease should also provide that all the flats are be regulated in the same way i.e. the same policy on pet s being kept in the flat .
Some estates are sold as leasehold properties for example if there are common areas and so the residents all pay to the upkeep of the landscaped areas.
There are lots of occasions when a property should rightly be leasehold.
It is important that you instruct a solicitor who specialises in leasehold property so that they can advise you fully on the terms of the lease to make sure that it is suitable for you.
The benefit you have with instructing Fidler and Pepper is that we offer a no sale no fee so if something comes up with the lease that means you do not wish to proceed you will not have to pay our legal fees ( you will still have to cover the payments for disbursements such as searches).
If you do wish to obtain a quote for buying or selling a leasehold property please visit we would be happy to provide you with a fixed fee quote.