The BBC article below describes and important difference between Freehold and Leasehold houses.
With Leasehold houses you will pay a ground rent to the freeholder (normally once or twice a year).
In some cases you may also pay a rent charge or service charge which is a payment used for the upkeep of common areas in a development.
Before buying a property you should always find out if you are purchasing a Freehold property or Leasehold property.
If it is a Leasehold you should read the Lease so that you know your obligations and those of the Freeholder.
You should ensure you know the amount of years left on the Lease and any payment due under it. A Lease with a short lease if worth less than one with a long lease.
Clients often ask how much it will be to purchase the Freehold on a Leasehold house.
This article shows that this question is impossible to answer. If the original developer owns the Freehold they may be able to offer you one price but if they sell the Freehold to an investor the price they want may be significantly higher.
What is important to note is that if you are not happy with the price offered there is a process set out in law that allows the price to be calculated. This involves appointing a specialist surveyor that can work out this amount and negotiate for you.
Call us for guidance on 0121 702 1580 or email [email protected].