What is the difference between a ‘Freehold’ and ‘Leasehold’ property?
During the conveyancing process, whether you are selling or buying, it will need to be established whether the property is a ‘freehold’ or ‘leasehold’ property.
We can help you by ascertaining this along with your rights and responsibilities in relation to this due to the differences between a freehold and leasehold property.
What is a ‘Freehold’ property?
- A ‘freehold’ property means that the owner has complete and absolute ownership of the land and all buildings that stand on it.
- As the owner of a freehold property, there are less restrictions regarding what can be done with the land or dwelling, provided that you comply with planning guidelines and restrictions.
What is a ‘Leasehold’ property?
- ‘Leasehold’ ownership of a flat simply refers to a long tenancy (the right to own, occupy and use a flat for a long period – this period is known as the fixed period or fixed ‘term’ of the lease).
- This fixed term can range from 999 years to a few years. Within that term, the flat can be bought and sold. The lease term is fixed from the very start of the lease and decreases with each respective year. At the end of the lease, the flat is returned to the owner of the building (the freeholder). The conveyancing team can advise you on the number of years left on your lease.
- Even though a leaseholder owns the property on a lease, it is the owner of the freehold who retains ownership of the external and structural walls, as well as any common parts of the structure. The owner of the building is also responsible for the maintenance and repair of the building.
If you would like Ringrose Law to act on your behalf in your sale or purchase, please contact a member of the Conveyancing team at Ringrose Law at one of our offices in Lincoln, Boston, Grantham, Sleaford, Spalding and Newark.