Leasehold Vs Freehold What's The Difference

Fundamentally, there are two major different of authorized ownership: freehold and leasehold. Although,realty developers often Hide the facts; the big difference can be between a home that is worth buying and one that isn’t. Many buyers who don’t rehash these terms before buying a home end up regretting it – getting into a wrong deal can be massively expensive.

What is freehold?
If you buy a freehold property, it means that you own a building and land, for eternity. While registry, your name would be mentioned as “freeholder”, owning the “title absolute”. Freehold is practically the preferred option: you can’t go wrong with it.
You don’t have to pay annual ground rent.
You are solely responsible for maintaining the structure of the building – the roof and the outer walls The entire houses are generally sold freehold.

What is leasehold?
With the leasehold property, you just have a lease from the freeholder (landlord) to use the property for a specific period. The leases are typically long term – often 90 years or 120 years but as high as 999 years – but can be less than 40 years.
A leaseholder signs a contract with the freeholder, which includes the legal rights and responsibilities of both the sides.
Usually, the freeholder is responsible for maintaining the common parts of the building, for example the entrance and staircase, along with the outer walls and roof.
Leaseholders are liable to pay the annual service charges, maintenance fees, and their share of the property insurance.
 Leaseholders have to take permission for doing any major renovations in the property.
If leaseholders don’t accomplish the terms of the lease – such as, by not paying the rent – then the lease can become forfeit.

Gharonda Builders & Developers can provide guidance on extending your lease or buying the freehold flat of your own.