This is the right information for you if you are planning to buy a property and you just don’t know which one you should buy between a leasehold and a freehold property. Unless you have clear information about these two and understand well their lease agreements, you might end up being conned, thinking you are buying one but in real sense you are buying another and it will end up as a leasehold scandal if you come to realize.
About ownership the two properties differ in a way that for leasehold property even if you have bought it you don’t have full ownership of the property, you will have to pay mortgage bill frequently and you will definitely have a landlord and still pay ground rent. For the freehold property is the one that once you buy you become an absolute owner which means there is no more mortgage bills and no landlord.
For the leaseholder the main responsibilities are to pay the yearly ground rent, maintenance fee, a yearly service fee and the part they need to pay about building insurance.
The responsibilities of a freeholder are mainly to make sure that the property is well maintained and make repairs where they are needed. He is also responsible for getting an insurance of the whole property. Finally the freeholder has to ensure that the agreements agreed upon are enforced and moves to court in case any part of the agreement is not adhered to.
If any of the parties fail to hold on to their responsibilities, it may result into a leasehold scandal .
The duration of ownership of a leaseholder is quite different to that of a freeholder; for a leaseholder the ownership is temporal, it can be from as short as forty years to as long as 999 years. For a freeholder there is basically no duration because they are the sole owner of the property unless they decide to sell it.