London Buyer & Seller Guide Engel & Völkers - Manual / Resource - Page 59
E n g E l & Vö l k E r s | B U Y E r s g U I D E
Freehold vs Leasehold
When embarking on your journey to own property in london, alongside budget, location, and other considerations, it’s
essential to grasp the different ownership options. In the Uk, there are three primary methods of property ownership:
Freehold Property
acquiring a freehold property means owning both the land and the building outright. as the freeholder, you’ll be responsible
for maintenance and management expenses. notable points about freehold property:
• You hold full ownership of land and structure, listed as “freeholder” in land records.
• no annual ground rent payments.
• You control maintenance, including exterior upkeep.
• no lease term constraints.
• responsible for the entire structure, including walls and roof.
Leasehold Property
leasehold involves renting the land from the landowner, common in apartment blocks. lease durations vary (40 to 999
years), with ground rent applied. When considering a leasehold property:
• Property management and maintenance are handled by the landlord or agency.
• regular service charge payments for upkeep.
• leasehold properties often offer affordability.
• savings on shared area maintenance.
• common for london flats.
• consider lease term impact on property value.
Share of Freehold
london also offers “share of freehold,” a unique setup where leaseholders collectively own the property’s freehold. Each
holds a share in the freehold company, granting control over management decisions. Benefits include cost-efficiency, lease
extension flexibility, and enhanced property value. coordination is key, and expert guidance ensures a seamless experience.
embark on your journey to london property ownership by comprehensively understanding these options and seeking expert
guidance from our dedicated london team, guaranteeing well-informed choices customised to your specific needs, whether
you’re a newcomer or someone unsure about ownership types.
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