Freehold vs Leasehold Properties: The Key Differences (UK)

[@macpduff2119]

I lived outside Hemmel hempstead 1980 and all the neighbors owned Leasehold houses, - not flats. They were astonished that in the US I owned my house AND the land it sat on. My professional classs neighbors explained that as the lease on the land under their homes got closer to the 100 yr termination date, the ability to sell their homes for full price got harder.

[@Mina-ns6us]

Every luxury apartment in London is either leasehold of shared ownership.

[@neeciiw7840]

Exactly so you’re F*cked up either way 😭

[@helendavies9608]

Explained clearly and concisely, thanks

[@graziellamintrone5343]

Great video!!! I passed it to clients when they are confused about the subject.

[@staceylouise6482]

Avoid leasehold houses! There is absolutely no reason why a buyer shouldn’t be able own their house. It’s just a way of making people feel like they own a house when actually they own absolutely nothing. Flats are understandable as there are other flats to consider which all use the same garden, roof, stairwell, corridors etc but houses should be owned by the buyer. It’s all a big legal scam!

[@Johnwick-vv4cj]

Can u buy the freehold from them

[@staceylouise6482]

John wick I think it all depends on the freeholder but I’m sure I’ve seen somewhere that you can legally force them to sell you the freehold, it’s called collective enfranchisement I don’t know too much about it though. If you’re in this situation I would ask for legal advice or visit citizen advice as they should be able to help more 😊

[@Johnwick-vv4cj]

@@staceylouise6482 I'm going to solicitors on Monday

[@michaelturnerofficial.]

@@Johnwick-vv4cj How did it go?

[@isaakmorse6044]

On other countries there is no such thing as leasehold. Even in flats and block of flats. The land is owned by all the owners of the flats

[@JohnnyEscopeta]

999 years. That makes total sense

[@BleedingSnow]

99 years, because most do for a hundred, then double the ground rent every ten years until you're kicked out and same scam repeats for someone else.

[@owenomalley7460]

Thanks this was really helpful

[@gabrieletoma7690]

if i buy a house with leasehold is it mine or i have to give it back to the owner of the land after a certain amount of years?

[@PropertymarkProtected]

Hi, if you buy a leasehold property you are purchasing a lease from the freeholder for the right to live in the property for a set number of years. You won't technically own the property outright, the freeholder (or landlord) will continue to own the property and the ground it sits on. If you want to know more about buying leasehold houses the guide on our website has a lot of useful information www.propertymark.co.uk/professional-standards/consumer-guides/buying-selling-houses/buying-leasehold-property.html

[@rvanner]

I'm selling an old leasehold property (1890s) with a 999 year lease on it. There have never been any charges from anyone on the lease (lived here 25 years). Seems the leaseholder is not active. In selling the house we're being asked to commit to insurance to cover the chance the leaseholder will re-appear. Is this standard practise?

[@PDG1956]

Yes - you are the leaseholder, and it is the freeholder who is not approaching you for the ground rent. Indemnity insurance just ensures that you can pay any demands that may appear out of the blue. It is my understanding that in the UK, the freeholder can only ask for back paid ground rent for the last six years but you should check this out.

[@GameGuruMax]

@@PDG1956 Thanks!

[@ADZ1LL4]

Thanks for the info.

[@PoppyRaid]

Hi can you say if its legal for a freeholder to sell off part of existing communal gardens to a new flat buyer . This also with out the leaseholders agreeing to it . Many thanks . ✌️

[@staceylouise6482]

Yes they can because it is their property to do as they wish with. That is totally legal because the leaseholder is basically a long term tenant and doesn’t own any part of the property. I would avoid buying a leasehold property if I were you.

[@PoppyRaid]

Stacey Louise hi many thanks for your info reply. Although you r answer makes sense its amazing to think a freeholder could sell all the communal land if desired that surrounds a building with leaseholders in it . When you consider that that was the attraction what a leaseholders buying into in the first place .if nothing else i would of thought law would now protect that right .. but not so it seems .. again many tganks . ✌️

[@staceylouise6482]

SERJMUSIC 2140 you’re welcome. yes I agree, I think it’s awful what they can legally get away with doing to people. I almost bought a leasehold house and was gutted when the sale fell through but I’ve looked into it a lot since and wouldn’t go for one now I’m more aware. It’s totally shocking that in this day and age there seems no protection for leaseholders that I can find. I hope you get everything sorted 😊

[@godlikelaw]

Background music is too loud

[@seaweedseaside5905]

So, what's the difference between them? What do you buy when you buy leasehold? What do you own?

[@ertugrulalindumitriu9007]

On leasehold flat means if something broken like roof, every one need pay for roof repairs

[@staceylouise6482]

You own absolutely nothing. It’s basically long term renting usually between 79 and 999 years depending on the lease, and you have a mortgage to pay it rather than just paying rent because you can sell the lease but you don’t actually own the property or the ground it stands on and you can only sell the lease with the number of years you have left on it, you can’t extend the lease in order to sell it.

[@seaweedseaside5905]

@@staceylouise6482 Thank you.

[@namyoungram3906]

@@staceylouise6482 thank you. With same amount of money , you would recommend buyjng freehold right? £467,000 3bed house free hold. £600,000 shareownership with new luxury flats. I was nearly put holding deposit £600,000 lease share ownership flats but i am having second thoughts.

[@staceylouise6482]

nam youngram hello, yes I would avoid it personally. The reasons being, at the end of the mortgage on the 3 bed house, it is yours to do as you wish with, the luxury flat unfortunately will ultimately still belong to the freeholder. The 3 bedroom house is going to appeal to more buyers if you ever come to sell, like families and disabled people, people who enjoy entering in the garden, or anyone who doesn’t want shared ownership or leasehold. I feel you would make more profit from this rather than buying the flat on leasehold AND shared ownership, as this may also put a lot of buyers off. Also if the house has potential to be extended this would also be a great opportunity to add value to the house, I think there’s not really much you could do to add value to the flat with it already being high end, you could end up losing money on it as the years on the lease decrease. Just to add, I don’t know much about shared ownership so I would seek legal advice about what happens if the other shared owner falls behind on their repayments and things like that because I’m not sure if it can be repossessed or not with you owning the other half, definitely worth checking before going any further though. Hope everything goes well for you whatever you decide to do 😊

[@rupertnenuphar2675]

The background 'music' is infuriating.