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What’s the difference between Leasehold vs Freehold Property?

Leasehold: Method of owning property (usually a flat) for a fixed term but not the land on which it stands.<br>Unlike a freeholder, as a leaseholder, you do not own the land the property is built on.<br>Freehold: Outright ownership of the property and land on which it stands. A freehold estate in land (as opposed to a leasehold) is where the owner of the land has no time limit to his period of ownership.<br>

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What’s the difference between Leasehold vs Freehold Property?

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  1. What’s the difference between Leasehold vs Freehold Property? Leasehold: ​Method of owning property (usually a flat) for a fixed term but not the land on which it stands. Unlike a freeholder, as a leaseholder, you do not own the land the property is built on. Freehold: ​Outright ownership of the property and land on which it stands. A ​freehold estate in land (as opposed to a leasehold) is where the owner of the land has no time limit to his period of ownership. freehold​ with others in the same building, known as 'share of ​freehold​' The main difference between Leasehold Property v/s Freehold Property: Leasehold: ● ● ● ● The land belongs to the state, leased to the owner for a certain number of years At the end of the lease period, owners must pay to extend the lease Requires state consent (obtained at the land office) to transfer ownership Most banks will not finance a property if the lease period is less than 30 years Freehold: ● ● ● The land belongs to the owner Ownership is indefinite Does not require state consent to transfer ownership (except in certain specially earmarked properties) Banks finance freehold properties easily ● Conclusion: Leasehold vs freehold ownership both are legal terms that describe the type of ownership of a property by the respective owner. In leasehold ownership, the flat/home on the land is leased to flat-owner for a certain tenor (lease period) but ownership of the land belongs to the original owner/freeholder. Generally, the lease tenor is 99 years and above in most cases. Freehold refers to ownership of both the property and the land on which the property has been built. Freehold ownership is relatively better in terms of clarity on ownership, flexibility in selling the property, and availing mortgage loans in comparison to leasehold ownership. Take benefit of our both services please visit us on ​https://www.leaseholdvaluations.com/ or contact us on: ​https://www.leaseholdvaluations.com/contact-us/ ​or call on: 01753 542984 ​or​​Email us on:​​enquiries@homereports.ltd.uk

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