If you are considering buying a flat, you’re likely looking at becoming a leaseholder. Here’s what that means for you, as well as the pros and cons involved.
Leasehold is the ownership of a property and its land for a limited amount of time. This is known as its tenure, which is agreed with the property’s freeholder. Leaseholds are usually flats or apartments in a larger building and are usually very long term lets of decades or even centuries. So, what is leasehold property?
As a leaseholder, you will own the rights to a portion of a property, but it won’t be wholly yours. There are many restrictions to owning property in this fashion and, along with the additional fees you’ll have to pay, you’ll have to be aware of how the landlord will allow you to act in the property.
While most people view owning freehold property as more advantageous than owning leasehold, it doesn’t mean that leasehold is not without its merits.
Despite the cheaper costs of many leaseholds, it is important to remember that these are only initial and that leasehold properties can come with a multitude of disadvantages.
While you own leasehold property you are subject to the rules put in place by the landlord. However, you do still effectively own your property. As such you are entitled to a number of rights as a leaseholder, but for these rights to be upheld, their are a number of responsibilities you have to undertake yourself.
The lease that you sign when purchasing a leasehold property will outline your responsibilities as a leaseholder. If you do not maintain these responsibilities, you could be taken to court. These conditions vary but can include:
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