Freehold Vs Leasehold

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Came across a simple explanation between freehold and leasehold in property.

Freeholds are the simplest to understand. When you buy a freehold, you own the property outright. Simple, eh?

Subject to the law and planning restrictions, you can largely do what you like on your land. If you own the freehold and want to paint the entire building bright orange, you can. If you want pets, you can have as many as you want. You want to let the garden get so overgrown it looks like a nature reserve, no problem. It's yours, you own it.

Freehold properties for sale tend to be houses, though there are an increasing number of freehold flats available. This is because of legislation that is making it easier for leaseholders to buy the freehold.

To some people, buying a lease may seem just like renting a property, and in a way they're right. Essentially you are buying nothing more than the right to occupy a portion of a building for a given length of time. You will have to pay a small amount of regular ground rent and maintenance in addition to a one-off payment that buys you ownership of the lease until you either sell it, or it runs out.

Leasehold purchases generally occur in buildings that comprise more than one unit, such as blocks of flats, or commercial property. In London, many houses are leasehold as well. The amount of alterations you can make to the property varies accordance with the lease and you may well have other conditions imposed upon you by the landlord.

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