Expert Realtors in Paignton

Understanding How Property Leases Work - Understanding How Property Leases Work Understanding the various property tenures is helpful for homebuyers in making informed decisions. In a world where jargon often replaces plain talking, this article demystifies the terms freehold, leasehold and flying freehold. It highlights the differences and implications they have regarding property ownership. Freehold Freehold properties are the most straightforward type of ownership. Buying a freehold means you own the property and the land it stands on outright, without any time limit. It’s yours – forever, if that’s what you want. Freeholders have complete control over their property, subject to planning laws and other legal obligations. They are responsible for maintaining the property’s structure and grounds but have the freedom to make alterations without seeking permission from a landlord. Leasehold On the other hand, leasehold means purchasing the right to occupy land or a building for a set number of years. Leaseholds are common in flats and apartments and can range from short-term, like 60 years (approach with extreme caution), to long-term, over 999 years. Leaseholders own their property but not the land it stands on. They must pay ground rent to the freeholder and adhere to lease conditions, including restrictions on subletting, owning pets, or making structural changes. Leaseholders also face additional expenses, such as service charges for maintenan...