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If you buy a home that is leasehold,
it is a bit like entering into a very
long-term rental agreement. You buy
the home but someone else owns the
freehold for the land that your home
sits on or for the building and the
land. You then lease the building from
the freeholder for a set amount of
time, which can be as much as 999 years,
and there are usually terms and conditions
in the lease stating who is responsible
for what.
If your home is freehold,
you have complete ownership of the
building and the land it sits on, which
means that, as long as you stick within
the law, you can do what you want with
it.
If you buy a home
that is leasehold,
someone else will own the freehold
just for the land or for the building
and the land. You lease the building
from the freeholder for a set amount
of time – it is like a very
long-term rental agreement – and
the period of time can be as much as
999 years, and there are usually terms
and conditions in the lease stating
who is responsible for what. For example,
if you buy a leasehold flat, the freeholder
is likely to be responsible for maintaining
areas like the roof and front path
while you’ll have to take care
of things inside your home such as
the boiler. You may have to pay a service
charge to the freeholder to cover maintenance
so make sure you find out how much
it is and add the cost to your household
budget.
You can sometimes extend the length
of your lease or buy a share of the
freehold. This is known as enfranchisement.
For more information
on leasehold homes, visit the Leasehold
Advisory Service website. |
