The difference between freehold and leasehold.

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There has been a lot of talks lately about leasehold and freehold in terms of property and what this means. For a large part of the time properties fall under the freehold category. This is where the homeowner owns the house and the land outright, Apart from the basic covenants that are set on a property it allows the home owner to do what they deem fit to the property both externally and internally. It also means that any land such as a garden or wider area can also be used in any way the owner wants, again within the scope of the covenants. However, leasehold is an entirely different situation that requires more explanation.

Leaseholds usually relate to a rented property but they can also relate a purchase as well. Simply put they are a period of time that a property can be owned for. In most cases when the mortgagor asks the mortgagee for a loan they will need to have at least ninety nine years remaining on the lease before they will be accepted. If this is not the case you may have to look at extending the lease. Lease Extension Cost is available through Sam Conveyancing. Secondly, these leasehold arrangements usually occur on shared ownership schemes.

The advantage of the leasehold is that you do not have to fund the upkeep of the entire property and its land. For the most part this is covered by a property management company but you may have to pay them for the service,