The problems with leasehold ownership | Freehold vs leasehold: what's the difference?

[@tilerman]

Very informative, thank you. One other point regarding leasehold flats is who owns the freehold/building. A friend of mine purchased his local authority flat. The flat shared a communal external landing running outside the front doors. The council decided the railings and front doors needed painting and my friend was presented with a bill just under £2000 for painting his front door and about 6 linear metres of railings outside his property. The work took a day and a half and because of his conditions didn't have a leg to stand on and had to pay up. That's a lot of money.

[@SelfInvested]

Yes, local authorities are notorious for this. But it isn’t their fault exactly. It’s how much they are charged for the works and it’s just passed on to the leaseholders. The problem is that local authority are often given very uncompetitive prices and are hamstrung when it comes to negotiating because of red tape…

[@d11xox]

As a first time buyer! Your videos are so useful for me 😊 thank you so much ❣️

[@SelfInvested]

My pleasure. Glad to hear you’re finding them useful. Thank you for leaving a comment 👍🏿

[@naomi3080]

Wow, great video! We want to buy a city centre flat within the next couple of years, so we will make sure that we only go for properties that come with a share of the freehold. I can't thank you enough for sharing your knowledge.

[@SelfInvested]

You are very welcome! Thank you for watching:) If you do go for a leasehold, remember to look for a very long lease (over 125 years - ideally, one that started with 999 years). You can check out my leasehold knowledge playlist for more info: kzbin.info/aero/PLUG_SDz9gLQKoeKClBTqr1cxDl5Z0EilF

[@IvanAlmada-yg2ne]

Man, I worked a long time in a property shop they never thought me that...thank you for a very oawww thank you...

[@joline2730]

Absolutely nothing wrong with videoing from a phone. Clear picture, the volume was good. What else do you need ?? Keep it up ✔👍💯🏠🏠🏠🏠

[@SelfInvested]

Thank you for all the feedback and comments! Hope you enjoy the rest of the content on this channel :)

[@TheWellnessAbbey]

Thanks as always! I saw a new build for sale online that is a leasehold- I was surprised. Anyway, when I buy my investment flat I need to watch out for the length of the lease...

[@SelfInvested]

You’re welcome as always! A new build house being sold as a leasehold?

[@erichl.liotta8248]

Thank you very much for this video. I wish I had seen it earlier... so I shouldn't have had to figure it all out by myself! You explained brilliantly every aspect of this matter that a first time buyer should be well aware of! Also... great advice!

[@joline2730]

Thomson Snell & Passmore are a very reputable firm of solicitors, dealt with them many times during my career in the legal field. As an aside, these days it doesn't matter where you live in relation to which solicitors you use. Everything can be done over the net or by post. My own solicitors are approx 200 miles from where I live. What you should do, when looking for a solicitor when purchasing property, is to ask how long the person who is going to deal with your matter s/he has been a solicitor or legal conveyancer. I would only go with someone who has been in this field for a minimum of 15 years, especially for a purchase (not so important for a sale) since they will then have experience in what pitfalls to look for. Experience counts !!

[@SelfInvested]

Thanks for sharing, Jo! What did I say about the proximity of your solicitors in this video? I can’t remember, but do agree with your point that they don’t need to be geographically close. Competence is more important!

[@joline2730]

@@SelfInvested No, you didn't mention proximity, I just thought I would make that comment, most of my comments are aimed at everyone to read, not just a comment for you 😁 I have been watching a few of yours, which are interesting and delivered very well. Thanks ✔💯🏠🏠🏠

[@karendemaynehopkins3240]

This video is really helpful! I’m currently looking for a place and for sure this information and clarification helps a lot! Tks

[@SelfInvested]

You're welcome. Glad it was helpful! Are you looking for a flat or a house?

[@sal4363]

This was really useful. Thank you so much. Im starting to look at buying my own place so have been watching all your videos. I've seen a property that I really like but the lease is only 70years, because of this the price of the property is very affordable for me. Do you think it would be silly to buy? As I was hoping that once the new legislations are applied I could extend the lease.

[@SelfInvested]

I would get advice from a surveyor on what the value of the property is, how much it will cost to extend (worst case scenario) and find out what the value would be after it was extended. Remember there’s no certainty on when and how the changes will become law, so if I was buying now, I would assume I would have to extend under the current laws and factor that into my costings. Also, make sure you get legal advice on the lease you’re buying to make sure there’s no surprise, and see if they have any views on the regulations changes

[@Dr196903]

I just came here from your reply link to another video yes many thanks - another great informative video. Keep it up!

[@SelfInvested]

Thank you bro! Hope you found it useful!

[@suewilson9833]

Thank you so much!!!! It is amazingly helpful. You opened my eyes!

[@SelfInvested]

You are very welcome, Sue! 😉

[@raga4655]

Great video! as always have you done one talking about moving from external building managers to self-management in leasehold buildings(flats) ?

[@SelfInvested]

Thank you! Not yet but I have a video coming out soon on leasehold reforms which touches on this… stay tuned!

[@nikkion2140]

Recent government change meant that there will be no marriage value in lease extension. This means lease extension becomes less cost prohibitive. Nonetheless, learning from having my fingers burnt before, I recommend to stay away from leasehold property, it is not worth it the long term cost and stresses to trade off for a lower purchase price. Best of luck.

[@SelfInvested]

You’re right, but the changes are not law yet. There are no guarantees on when and how they become law either. I cover the changes in this video: kzbin.info/www/bejne/pZqpkGeBYq99hs0

[@devikatamang7442]

Thanks. Please make a video on shared ownership.

[@SelfInvested]

Currently, I have 9 videos on Shared Ownership. Here’s a link to the playlist: kzbin.info/aero/PLUG_SDz9gLQI3lKk_GIxi9Kgn_GeCaDDp

[@rb7007]

Great information, as always. Thank you! 👍

[@SelfInvested]

Thank you Rachel! ☺️

[@derekasomani4838]

Thought provoking

[@bourne_legacy090]

Very insightful thanks 👏🏾

[@SelfInvested]

You’re welcome bro!

[@BellaDiary]

I think there's a lot of great information here BUT some of it isn't so accurate. If you own a leasehold house, with no communal areas, it's not true that you would pay a service charge. You would only pay that for areas where you're receiving a service. e.g. a flat in the city centre with a lift that needs paying for etc. Great video though :) Also, there are properties that are leasehold and have a lease of 999 years which is basically a freehold.

[@SelfInvested]

Thanks for watching and leaving and comment! I don’t remember saying that if you have a leasehold house with no communal areas, you would need to pay service charge - but I’d be grateful if you could timestamp where I do, I may need to clarify the point I was making. I do remember saying that freehold houses in new estates with communal areas, usually have to pay a service charge for the shared private parts.

[@Ray_eddi]

Good job dude!

[@sangeetsiv]

This is deffo in focus lol but I liked your earlier aesthetic, you were just shooting a bit too shallow, and that only works if you have a focus puller or maybe the Sony a700. Try sitting a bit further from your first cam if it's a DSLR, and if using your phone you can go tighter but sit further away from the background so it still looks a bit shallow and you don't have those deep shadows. I'll shut up if this is annoying because the content is still really good.

[@SelfInvested]

Haha! No, I do need to improve the production value. I’m going to be using my phone and trying a few different setups going forward. Do let me know your thoughts!

[@Queenchar86]

Lots of good information. Thanks

[@SelfInvested]

My pleasure! I’m glad you found it useful :)

[@GoddardEmpire]

Leaseholds are a scam, people getting charged £1-5k or more for service charges. THATS NUTS!

[@Britleb]

So helpful! Thank you so much!

[@SelfInvested]

Glad to hear it. You are very welcome! If you enjoyed this video, you may also like the one I did on new build vs older builds: kzbin.info/www/bejne/pZzNpYOEhq2XfZI

[@phdw9834]

Why is there an associated leasehold length for a share of free hold and how does it affect the value of the property?

[@spmain97]

That’s a lot of research. Thanks.

[@SelfInvested]

You’re welcome. Thanks for watching 🙏🏿

[@kennethasare1]

Great explanation

[@ryanb01]

Good vid, do you think the housing market will crash later this year on even next year

[@SelfInvested]

Thank you Ryan! It is really difficult to say because the Government is doing a lot to prevent a crash. I think the market will slow later in the year and prices will fall, and that's what the experts are predicting. But tbh, I don't know - no one does, but best guess, prices will fall. I would try to buy well (good location, property, freehold or at least good lease terms (long lease, no ground rent), etc.) if I were buying now, rather than try to time the market. Sorry I can't be more helpful!

[@ryanb01]

@@SelfInvested no that’s great thanks!

[@trayavlon]

What if you can't afford a freehold property? If buying a leasehold is pretty renting then shouldn't you just rent until you can afford a house or simply move to a more affordable area?

[@SelfInvested]

This is a personal decision each individual has to make. The point of the video was just to explain the differences. I personally live in a leasehold property. If I could go back in time I’d probably avoid it and go for a freehold if possible. If not, I’d be looking for a flat with zero ground rent, a very long lease (over 125 years), low service charge and a decent sinking fund. If you buy leasehold, just buy one on the best terms you can...

[@GD_02]

@@SelfInvested it’s a tricky decision, if your preference is to live in London.

[@MayastarOfficial]

Thank you for a great video! 😘🥰💖🌈🦄✌️

[@trayavlon]

What is a reasonable ground rent and service charge sum?

[@SelfInvested]

Hey Tray! Thanks for leaving a comment! Ideally, if I were looking for a flat, I’d be looking for one with zero ground rent. Ground rent differs by location, but generally, I’d be looking for a flat with no more than £250 a year ground rent, which increases no more often than every 25/30 years. Service charge is dependent on the services/facilities that serve your development, the more there is to maintain or pay for, such as lifts, water features, concierge service, etc., the more expensive it will be, so I would avoid these things if I could. According to Direct Line for Business, the average service charge for new builds is £2,777, and for older builds its £1,417...

[@jcs3330]

Has in Spain and many european countries, 'leasehold' should be 'completely abolished' by the government, leaving only ground rent payable for the land it sits on.Has for 'management companies to maintain the building, these can easily be contracted by the home owners community (I have owned homes in both the UK and Spain, and this is easy for the community to set-up and finance. Within the UK this is 'out of date practice' just pure greed by both the government and specialised leasehold corporate companies who buy them from developers. It does not financially benefit the homeowner in any shape or form. The government do not need to 'review' this....they need to 'ABOLISH' it!. Has for 'ground rents'. When leasehold property is 'resold' by the original purchaser (ie a new development etc) that 'original ground' rent (ie £250) should be transferred has within the original deed also. And not changed to a 'Deed of Variation' to change the 'original' ground rent from a 'permanent' non- annual increasing one of ie £250 per annum to a 'reviewable' ever increasing one measured against RPI index. Which the same only benefits the 'leasehold companies owners' and not the 'individual' homeowner -leaseholder. So, stop the 'greed' and abolish both. And let the 'homeowner...be the 'homeowner'.

[@leahcardzansi3924]

Hi thank you I have by chance stumbled across your video as I am in the process of saving for a down payment and was looking into the share ownership, this video thankfully has given me a head start on what I need to look for what questions I need to ask as I thought it was better to find accommodation through a housing association 😮 I have given myself to the middle of 2025 or beginning of 2026 to save for the deposit may I ask roughly for a 1-2 bed flat deposit would freehold property would I have to raise and have I given myself enough time to save for a down payment and additional fees. Thank you I appreciate the time an effort you have taken to make these videos as I have only just started due to certain issues o would be jumping from the pot into the fire without knowing the pitfalls as not always something that is normally not easy to attain has many pitfalls that you don't see so I thank you and I will follow quite closely going forward stay blessed always 😊😊🙏🏼🙏🏼

[@TheAssetmgr]

Great video 👌🏾

[@SelfInvested]

thank you! 🙏🏿

[@rayhan15243]

Can you get flats with a share of the freehold on shared ownership or help to buy?

[@SelfInvested]

I don’t believe any Shared Ownership or Help to Buy flats come with a share of the freehold, but my next video will be talking about some changes to H2B that are similar to share of freehold, so watch this space!

[@aninelanalin162]

Thank you for this useful info. Could you please share if you know some websites where it's possible to filter results of properties in UK by tenure (leasehold/freehold). Maybe some websites with all new builds in London. I will be very grateful :)

[@SelfInvested]

You’re welcome 🙏🏿 I’ll need to do some research on this because I’m not sure. If a flat comes with a share of freehold, it will usually say but I’ll need to see if there’s a way to filter between leasehold and freehold - sorry!

[@karendemaynehopkins3240]

Hi is there any chance for you to make a new video but about cladding and where the law protects new owners? Or the drawbacks in the case of buying a flat with this unsolved issue ? Hope you get this msn. Thank you Karen

[@SelfInvested]

Have you seen this video I did? kzbin.info/www/bejne/pIHXiqSdicymo7c Have you already bought a new build or are you looking? Lenders won’t lend on tower blocks that don’t have an EWS1 certificate to say there’s no dangerous cladding on the building, so the risk to new buyers should be low... The main people affected are current owners...

[@karendemaynehopkins3240]

@@SelfInvested Thank you so much for this video! Quite helpful ... I am currently looking to buy.. looks like the best chance to buy would be whether a new development or a house.. Thank you Again!, great input

[@joline2730]

Self Invested: what's your name?? You also forgot to give the "I'm not a legal expert" waiver - quite important. Yes, you are right on the point you make at the very end - which to my mind should be a top priority, is about Sell-on. People generally are so caught up with a purchase, normally with their heart and not their head, that they totally disregard the Sell-On factor. This should always be in your mind. Just because you love it, does not mean it is a good buy!! Look at area, schools, transport connections and also the outward appearance of the property, especially those parts you cannot change.

[@SelfInvested]

My name’s Lemuel. I should’ve introduced myself better in these older videos. I’ve improved recently. Regarding the waiver, I do include a disclaimer in the description of the video but may need to think about including one in the actual video as well!

[@joline2730]

@@SelfInvested Yes Lemuel, I did see the waiver in the notes but it was right down at the bottom. I also then read your name !! I will be catching up on more of your videos, which are well thought out and clear for people to understand. Well done ✔💯👍🏠🏠🏠

[@SelfInvested]

Thank you! 😊

[@mw...]

great information

[@SelfInvested]

Thank you! Glad you liked it :)

[@Jivsyt]

As an investment it wouldn’t be good right as in the future lets say 20-30 yrs from now if the value of the leasehold property increases by 50% as I don’t own the property I can’t sell it and make a profit on it

[@SelfInvested]

Leaseholds can be good investments but you need to be careful of the pitfalls. You could buy now and sell for a profit in 20-30 years if you buy a leasehold with a very long lease (over 125 years for example)

[@minasaweres]

Hi, loved the video. Would a 999 year leasehold property be classified as a freehold?

[@SelfInvested]

No, it wouldn't be. Leasehold is leasehold. However, it may be that a 999-year lease comes with a share of the freehold for the whole building. As far as I know, there's no freehold apartment, only apartment owners who own a share of the freehold for the building. In this situation, there's usually a 999-year lease for the individual flats.

[@tonyadams8812]

Would a 999 year leasehold property be classified as a freehold? The answer is in your question. Leasehold.

[@ZK23gameing]

Very informative

[@SelfInvested]

Thank you Maryam 🙏🏿

[@hhi3539]

Really enjoying your vids man do you think it’s possible to remortgage lees holds btw

[@SelfInvested]

Thanks for watching the videos! I’m glad you’re enjoying them. I’m not sure I understand your question. Why wouldn’t it be possible to remortgage a leasehold? The thing that would usually prevent this is if the lease doesn’t have enough years left on it, or there’s a serious issue with the building, such as the cladding scandal

[@hhi3539]

@@SelfInvested oh thanks you mate I hear that they won’t let you remortgage I did some searching and found out it is if the lee is below 70 I think thanks mate

[@georginabadejo4356]

What would you say about a maisonette leasehold with a lease of 963 years and ground of £10 pa and service charge £490pa. Is it worth trying to get the freehold?

[@SelfInvested]

That doesn’t sound too bad, but make sure you read the lease thoroughly and get legal advice on anything you don’t understand!

[@joline2730]

£490pa is pretty good !! However, it does rather depend on the future increments - like he says, check the lease wording, it will be in there. Also, sometimes the Freeholder will sell the building to someone else, usually a corporation, and they are very greedy and will start to put up the Maintenance charges to something unpleasant!! Like he says, buy a freehold property. Save, save save ✔💯

[@mbbx5va2]

I'm terrified of buying a leasehold knowing all the problems. How can one justify spending most of life savings ie in terms of deposit on an investment that has so many problems. I don't dispute some people have done ok with flats but I feel like it's gambling. But all that is affordable is flats in London and even in commuter locations

[@SelfInvested]

Firstly, the world is bigger than London. Have you considered a commuter town, just outside of London? Secondly, if you buy leasehold, the key is buying well, it doesn't have to be a gamble. Things you need to consider include: going for a long lease (over 125 years), zero ground rent, reasonable service charge, decent sinking fund, etc. Have a watch of this video: new build vs older build - kzbin.info/www/bejne/pZzNpYOEhq2XfZI

[@mbbx5va2]

@@SelfInvested thanks mate. I've considered commuter towns but the big cities are I'm priced out of and the smaller ones I feel a little uncomfortable going to as not that diverse. Yeah I've realised it comes down to either commuting a long distance to work in London where your life is work and recover from commute. Or get a leasehold a bit closer and hope it's ok. Some of these leaseholds though makes you think its a system where developers, lawyers and landlords just exploit people

[@Clauds71]

👍

[@anitharajkumar9359]

Thanks for the video. I am planning to buy a new leasehold property 1bed flat with little garden for 125years help to buy scheme. No service charge and ground rent is 50 pounds. Really confused to buy it or not. Please advice me. Thanks.

[@SelfInvested]

Hey Anitha! Thanks for watching. The first thing to say is that, from my understanding, if you are buying a flat with Help to Buy, there shouldn't be any ground rent on it, see this government announcement on 24 February 2020: www.gov.uk/government/news/housing-secretary-clamps-down-on-shoddy-housebuilders - I also cover this change in this video: kzbin.info/www/bejne/iGXblKOroad4qdE Also, ground rent is being banned on new leases from 30 June - covered in this video: kzbin.info/www/bejne/p5ncap6Hpt5jobM - so I don't think there should be any ground rent on the flat. I can't really give you specific advice, but I do know a number of house builders are offering 999-year leases with management of the building because of the changes that are being made to the leasehold system, so a 125-year lease does seem short, based on where things are going. Have a watch of this video to learn more: kzbin.info/www/bejne/pZqpkGeBYq99hs0

[@anitharajkumar9359]

Hi, thank you very much for your kind reply.I too thought of the same 125 years being a short lease as a first time buyer I will wait patiently to find a good one. Thanks again ♥️

[@SelfInvested]

125 years was the typical length of lease before the leasehold reforms were announced in 2020, but since then house builders have started offering 999-year leases as standard on new builds. Some are even giving the leaseholders control over managing the building, so they have more control over service charge and other maintenance costs, in addition to 999-year leases.

[@anitharajkumar9359]

It makes more sense. Please continue supporting people like me. God bless you 🙏

[@kaihav2405]

I’m looking at a property with a 125 year lease from completion. I plan to stay there somewhere between 5-8 years. Would this be a good buy? I.e. i could sell it on easily?

[@SelfInvested]

Hey Zachary! As well as the lease length, you need to consider ground rent, service charge and the sinking fund. Is the property new build? Generally, it shouldn’t be difficult to sell a leasehold with over 100 years on the lease. This may change in the future, however, as new leases are likely to get longer with changes the government is planning to make to the leasehold system in the future

[@kaihav2405]

@@SelfInvested thank you for replying! There’s £200 ground rent per annum and the service charge plan / detail seems reasonable. I love this property and am desperate to move but want to make sure that it wont be a mistake. Any further thoughts are much welcomed. Thank you.

[@kaihav2405]

P.S. not a new build, its a renovated victorian building.

[@juanesteban7059]

@@kaihav2405 How it goes man?

[@kaihav2405]

@@juanesteban7059 i purchased the property. Very happy here and plan to move on when the lease is around 119 years remaining. All the information I’ve received says that this should be okay.

[@tigerwong9845]

Thanks my man. Btw, you have an uncanny resemblance to a young levar burton, the reading rainbow guy 😉

[@sisternum9022]

Thank you

[@SelfInvested]

You’re welcome 😉

[@interflat6692]

Liking this channel

[@SelfInvested]

I’m glad you’re enjoying it!

[@GD_02]

Thank you again. I went back after seeing this and reviewed whether I should hang on for a freehold property. Lots to consider? 👍🏾

[@SelfInvested]

Yes, indeed! If I could realistically buy a freehold, I would go for it. I see leasehold as a Plan B, but for many, buying a freehold they are happy with is out of reach. I think if you go for a leasehold, buy well - long lease, low service charge, large sinking fund, zero ground, etc...

[@GD_02]

@@SelfInvested The only option available really is to move further afield to find a reasonably priced freehold property. The downside being commuting costs and time spent travelling outweigh the benefits

[@GD_02]

My additional travelling costs work out currently around £5k per year and untold hours of travel so not sure it’s worth the hassle

[@spmain97]

Do you have a blog of sorts?

[@SelfInvested]

No, not currently. I was thinking about starting one but haven’t yet. Do you prefer this sort of information in written form?

[@alexg2165]

new builds went from leasehold to Fleecehold

[@SelfInvested]

Haha! I think most leaseholds fleece their owners

[@alexg2165]

@@SelfInvested true, just beware that fleecehold is a fake freehold, which were introduced to keep the status quo when the leasehold rentier seeking became too scandalous. Doesn't get enough coverage in the conflicted mainstream... Wiki it.

[@dantetepes8849]

Don't buy share house After the lease they can kick you out

[@25marshalyn]

Great info but put a bowl of fruits in the background of that empty kitchen!

[@SelfInvested]

Thanks, Marilyn! Yeah, I wasn't a fan of the background either. It didn't last very long!

[@rudra7615]

Hold on a min... So majority of flats are leasehold and leasehold means you don't own the flat. The freeholder owns it.. Wtf, what is the point of buying a flat? You pay so much and then you don't own it, you are essentially renting. Sounds like you should just rent flats and try and buy freehold houses. Why is this sh** even legal? Get rid of the ground rent, allow people to own flats and a share of the ground as part of the purchase. End off

[@SelfInvested]

I know, right! It’s a relic of the feudal system, when lords used to charge the lower classes to build homes on their land but didn’t handover ownership of that land (hence the term ‘landlord’). It does look like the law is changing for future leasehold properties, though. Have a watch of this video: kzbin.info/www/bejne/pZqpkGeBYq99hs0

[@tonyadams8812]

'The problems with leasehold ownership'? You don't 'own' a leasehold you lease it. You're just a glorified tenant.

[@wild4fp]

I would not buy a property with leasehold. It will not be a happy match all.

[@MaryMclare-sp6vx]

Its the same old story. You'll have nothing and be happy. What a load of rubbish