Leasehold and Freehold Property Freehold and Leasehold FREEHOLD

Leasehold and Freehold Property

Freehold and Leasehold. FREEHOLD PROPERTY: � � While in case of freehold estate is "free from hold" of any entity besides the owner There are no payments of ground rent or service charge. Rent Charges may apply but these are generally quite rare and the payments relatively small. You own the building and the land upon which it is built. freehold properties give more right and responsibility to the owner and therefore are better than the leasehold properties

Freehold and Leasehold - Cont LEASEHOLD PROPERTY. � � Comprises of an estate in land subject to a predetermined period of ownership. Most flats are leasehold. In Leasehold property an ownership of a temporary right is given where a tenant holds rights of for a specific period You essentially retain an estate interest for a prescribed period of ownership ranging from 99 – 999 years and usually pay ground rent and contribute toward the maintenance and insurance of the building – (Service Charge) As the lease starts to decrease so too does the value of the property. Leases with less than 80 years left are difficult to sell and buyers are reluctant to consider these.

� � Leasehold does not transfer the ownership to the buyer While in case of freehold the property could be transferable to the owner's "heirs and assigns. Person who buys a leasehold property has to pay the communal maintenance and repair cost, owner of the individual unit pays a maintenance charge in case of freehold property.