Are you searching for a new home? If, during your search, you come across a leasehold property, how do you know if you should buy it or steer clear? There are a few key things that you need to know before you make an offer - read this article to find out.
Some think you should steer clear of a leasehold property. The fact that you are paying to purchase a property but won't actually own the bricks and mortar can put some people off. But, if you are living in a city centre, it is unlikely that you'll be able to purchase a property that isn't a leasehold tenure because many of the properties in a city will be apartments, either in purpose-built blocks or above commercial premises.
But should you shy away? Is there any reason that you should not consider buying a leasehold property?
The critical difference between leasehold and freehold properties is the actual ground below your property. When a property is leasehold, the ground below the building is not owned by you when you buy the property. Conversely, when you purchase a freehold property, you also purchase the land below the property. This would mean that if your property fell down or was destroyed somehow, you would still own the land, whereas if this were to happen with a leasehold property, you wouldn't. Of course, this is a rather extreme way to describe it, but it makes the point.
A leasehold property is perfectly saleable and safe to purchase, but there are a few key things that you need to know about the property before you go ahead with an offer.
Make sure you understand what you are getting yourself into, and establish these points before making an offer. Leasehold properties can be an excellent option with lower maintenance and many costs included in the management fees.
If you are looking to buy a leasehold property and have questions about the lease and how it will affect you, contact our team of property experts today. Click here
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