leasehold/freehold

[regulators]

on a property that is for sale what does leasehold and freehold mean. In simple terms.

[Uzoma]

Simple terms:

Freehold means that you're buying the ground as well as the building if you like.  For example, a house.

Leasehold could be a flat in a block of flats so the leaseholder does not have to maintain the building and in a sense, doesn't own the building.  So, for example, if you bought a council flat, you would not need to paint the outside of your flat separately. This is because the council still 'own' the building.  I'm sure that some people with a slightly more technical slant will help smooth out the rough edges of what I've just said.

[ianess]

Unsure if I totally agree with Uzoma, although he is on the right lines.  My understanding is that freehold means that you own the land the property sits on, whereas in leasehold while you may own the property the land is owned by another party to whom ground rent has to be paid for a certain number of years.  If at the agreed time the lease isn`t renegotiated the land [plus the property] becomes owned by the landowner, ie you would lose `ownership` of the house,as you would no longer have any right of access to it.

I am not a lawyer and am open to contradiction but I think I`m on the right track.

[Octavius]

Freehold - You own the building and the land - after you have paid the price (mortgage - 25 years say) you own the building and the land that it sits on.

 

Leasehold - The freehold is owned by another party and you effectively lease this freehold for the duration of the lease (say 99 years) after this period expires you as leaseholder effectively own nothing, since it retuirns to the freeholder who may or may not re-lease it.

 

In modern terms, if you 'buy' a lease, you are effectivle paying someone elses mortgage for them, as with renting!

 

 

 

 

[mjandrews96]

leasehold      THEY OWN THE LAND

freehold         YOU AND HER MAJESTY OWN THE LAND

[booksworth]

But fortunately now leaseholders generally have a right to buy the freehold. Gets a bit complicated with blocks of flats, but can still be done.