What is a leasehold property?
There are generally two central “holds” to associate with UK properties. First, they are freehold and leasehold. Second, the Freehold property is owned by the person or persons living in the property. Third, they own the building and the land immediately surrounding it. This will all be documented in the deeds for the property. The owner bears the responsibility for the maintenance and appearance of the property. However, a leasehold property is quite a different prospect altogether. It is so diverse that you will need to employ a company like Sam Conveyancing to ensure that you get the right kind of situation you want. Keeping up with the latest Conveyancing news is also essential.
The leaseholder owns a small part of the building in question. For example, a block of flats is built. The landlord owns the freehold of the building, but the individual apartments are sold on a leasehold basis. These usually last anywhere from 40 to 120 years. This can be extended for a cost. Most lenders will only look at leases that are 70 years or more, but this can differ.
The leasehold is not responsible for the building, but they do have to pay a maintenance charge for any communal or public areas that fall under it. This takes the form of ground rent. It means that some of the costs you would expect from a freehold are deferred to another person to deal with. However, local councils are increasingly happy for park areas to be covered by a leasehold, meaning you could end up paying for it.