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No, a leasehold is basically the right to live in a defined space/flat/house on a given piece of land. It is essentially a very long rental agreement. A freeho
by KaiserPro 9y ago
No, a leasehold is basically the right to live in a defined space/flat/house on a given piece of land. It is essentially a very long rental agreement.
A freehold is where you own the house, the land, and the right to dwell in said land in perpetuity.
A leasehold however allows you to dwell in a flat(for example) for a defined time (99-125 years is popular) you agree to maintain the internal spaces (typically from the plaster inwards). You will pay a "ground rent" for the right to use the land that your flat is located on. In return the freeholder (the person/company) that owns the whole building and the land, is responsible for the maintenance and upkeep of the fabric of the building. They are allowed to issue a "service charge" to recover the reasonable costs of upkeep and repair.
Crucially you never own the "fabric" of the building, or the supporting land.
- golergka 9y agoSo, can't the original owner of the house and land decide whether to offer freehold or leasehold agreements?
- KaiserPro 9y agoYes and no. For leasehold house, then its very simple, the leaseholder can buy the freehold. Or the freeholder can make an offer to the leaseholder. For a block of flats, its a bit more complex. If a majority of the leaseholders club together, they can buy the freehold, and create their own management company. This sets out in more detail how and when things can happen: https://www.lease-advice.org/advice-guide/houses-qualification-valuation/ https://www.lease-advice.org/advice-guide/houses-qualificati... The recent scandal about doubling ground rents can be rectified if the leaseholder buys the freehold, but that is expensive, especially as the houses are effectively unmortgageable