Freehold Properties

Sometimes, it may seem difficult for a common man to understand the rules, legalese, terminology, regulations of real estate as it is laden with the torrent of it. Buying a house is, undoubtedly, stressful experience as it can be a perplexing task. Freehold and Leasehold properties are two terms that are used frequently in real estate jargon and the contrasting point between the two lies in the ownership and control that one holds over the property. In this blog, we have discussed in detail what Freehold Properties are and what advantages and disadvantages it may possess.

What is a Freehold Property?

As the owner, who doesn’t wish to do whatever he or she feels with their home provided he or she keeps within the local planning rules? Freehold property means that the property you are planning to buy is free from the hold of any entity, you are entitled to live there for as long as you desire. You will have the right to make changes in the house or deform some parts of the house. In short, you will have complete ownership of the property for an indefinite period and you can hold it freely. The property is yours until you choose to sell it to someone else.

An upper hand one can get of owning a share of the freehold property is that it removes the concern over expiring leases or having a lease that is of shorter duration. There are certain advantages and disadvantages of having a Freehold property, so before making a commitment, make sure to do the thorough research and never be reluctant to seek legal advice from our experts at fairpockets.com.

Advantages of Freehold property:

  1. You are the sole owner i.e. you possessed complete ownership and you can modify the structure of your property anytime, as per your desire.

  2. You can do whatever you wish to do with the property as your wish lies within the confines of the law and local authority. There are certainly no limitations on what you can do with your home (smoking, pets, and building work) as there may be in case of leasehold property. With a freehold property, there wouldn’t be any countdown to a possibly expensive renewal, or fear of decreasing value as buying freehold is permanent.

  3. You do not have to worry about paying any ground rent, services charges or any other landlord charges.

  4. It is a long-term investment. If the budget permits, one should prefer to invest in freehold property, given better clarity for future goals.

  5. You do not have to worry about the lease running out. The property is yours indefinitely and you own the property outright. You held the property until perpetuity and transferred through generations.

  6. Freehold properties also involved less documentation in buying/selling of the property, unlike leasehold properties where extensive documentation is required.

Owning a home is a keystone of wealth… both financial affluence and emotional security”. – Suze Orman

Disadvantages of Freehold property:

  1. It’s your responsibility for the functioning and maintenance of the land or property.

  2. You have to be obliged to your local council and community to be a responsible homeowner. If the building falls into disrepair, you are too noisy, or your activity is a nuisance to the neighbours you are legally and financially obligated to take action.

  3. Buying a freehold property, in most cases, can be a more expensive deal than buying a leasehold property, as you own the land as well as the property. They also usually refer to houses rather than flats, so finding a flat available for freehold purchase can be an uphill task.

As freehold are more stable and are most likely to increase the value in the longer term, therefore, buying a freehold property is more preferable than the leasehold property. Nowadays, it becomes easier for anyone to invest in the property market, but also more strenuous to know what exactly they are buying or dealing in. So, do not hesitate to seek advice from the realty experts at fairpockets.com.

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