What is Freehold?
If you purchase a freehold property, you own both the building and the land it stands on outright. This gives you full control over the property, with no time limit on your ownership.
Pros of Freehold Ownership:
- You own the property indefinitely
- No ground rent or service charges to pay
- Greater freedom to alter or extend the property (subject to planning permission)
Cons of Freehold Ownership:
- You’re solely responsible for all maintenance and repairs
- Freehold homes can be more expensive to buy upfront
What is Leasehold?
With a leasehold property, you own the home for a fixed term—often between 99 and 999 years—but not the land it’s built on. The land remains owned by a freeholder (or landlord), and you lease it from them.
Pros of Leasehold Ownership:
- Typically, lower purchase prices compared to freehold
- Some maintenance responsibilities (like communal areas) may fall to the landlord
Cons of Leasehold Ownership:
- The lease will eventually expire, and ownership reverts to the freeholder
- You may face ongoing costs like ground rent and service charges
- Restrictions may apply to renovations or alterations
What Should Buyers Consider?
Before deciding which type of ownership suits you best, think about the following:
- Lease Length: A shorter lease can reduce a property’s value and make it harder to sell or remortgage.
- Additional Costs: Ground rent and service charges can add up—make sure you understand what you’ll be paying.
- Restrictions: Leasehold properties may come with rules about what you can and can’t do.
- Your Long-Term Plans: If you’re looking for long-term stability, freehold might be the better option. If you’re prioritising affordability or lower maintenance, leasehold could be more suitable.
How Myers & Co Can Help
Understanding the legal implications of leasehold and freehold ownership is crucial when buying a home. At Myers & Co Solicitors, our experienced residential property team is here to guide you through every step of the process, ensuring you make the right decision for your future.
For further information about how we can help with your next property purchase, please contact Rachel Silvester Head of the Residential Conveyancing team on 01782 525016 or email rachel.silvester@myerssolicitors.co.uk. Myers & Co has offices in Stoke-on-Trent, Staffordshire.
