Leasehold and freehold properties: What are main differences?
The conveyancing experts at Farnworth Rose are often queried by clients on numerous different aspects of the conveyancing department.
One question in particular that is regularly raised by our clients is ‘what is the difference between freehold and leasehold properties?
In our latest article the Farnworth Rose team have put together a detailed guide on the key differences on these two types of property.
If you would like more information on leasehold and freehold properties, or have any other conveyancing needs that you would like to discuss with an experienced conveyancing specialist, just call the Farnworth Rose team today on 01282 695 400.
Our guide to leasehold and freehold properties
Buying a leasehold property means that you own the property, but not the land that it is situated on.
This means that you will enter a lease agreement with the lands freeholder who is often referred to as a landlord and will own the property for the length of the arrangement that has been agreed.
Once the lease agreement expires, the freeholder will once again have entire ownership of the property, unless of course the lease is extended.
Important factors to take into account when buying a leasehold property
Once you purchase a leasehold property, it is important to realise that you will acquire the lease from the former owner.
Subsequently, it is crucial when buying a leasehold property that you discover how many years are left on the lease, how much you will have to pay in ground rent and if there are any additional service charges that you will have to pay.
Flats are a common form of leasehold property, and you are likely to be subject to service charges if you purchase a leasehold flat.
Service charges are incurred for the upkeep of the building, and more specifically cover:
- The maintenance of outdoor space such as gardens
- Electricity bills for communal areas
- The maintenance of external walls
Are you interested in buying a leasehold property in Lancashire?
In the North West, and Lancashire in particular, leasehold properties are very common. A large number of these leasehold properties are terraced houses that originally held for a term of 999 years.
It is likely that these lease agreements contain some restrictions, however do not incur any service charges.
The Farnworth Rose conveyancing team can assist you with any information that you need on buying a leasehold property in Lancashire and can also offer you expert advice on specific actions that you may need to take when it comes to buying the property.
When buying a freehold property, unlike when buying a leasehold property you own both the property itself and the land which it is sat on.
This means that when you own a freehold property, you are solely responsible for making any necessary repairs and maintaining the property and the land that you have acquired.
However, owning a freehold property does indeed have its benefits.
One of these advantages is that as long as you are compliant with planning regulations and any restrictions that have been listed in the property title, you can make any changes that you wish to the property and land that you own.
Additionally, you won’t have to deal with a landlord, nor pay ongoing ground rent or service charges.
Contact the Farnworth Rose team today!
The conveyancing team at Farnworth Rose consists of specialists in both freehold and leasehold properties.
To discuss any of your conveyancing needs with one of our dedicated legal experts, just give our team a call on 01282 695 400.
Alternatively, if you can’t speak to one of our specialists over the phone right now, you can also get in touch with us by completing our quick and simple online enquiry form.