11 Common mistakes homebuyers make (and how to avoid them)

Getting to grips with the difference between leasehold and freehold properties is particularly important if you’re buying a flat, because it affects what you will be able to do with your home and what kind of fees you’ll have to pay.

With a freehold property, you own not just the property itself but the land it sits on, as well as airspace above the property for up to 500 feet, for an unlimited time.

With a leasehold property, you own only the property itself, and not the land it sits on; the land itself is owned by the freeholder. You have to pay ground rent, service charges and maintenance fees, and any alterations you wish to make to the property have to be approved by the freeholder. You also only own the property for the amount of time indicated in your lease, after which ownership passes to the freeholder.

Houses tend to be sold as freeholds and flats as leaseholds, though this is not always the case. For example, flats are occasionally sold on the basis that the owner will share freehold with others in the same building, while some new-build homes have been sold as leaseholds in recent years. Learn more about some of the things you need to watch out for when purchasing a leasehold home in our article Buying leasehold property: how to avoid the pitfalls.

Author: wpadmin

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