When it comes to purchasing a home you will see the terms freehold and leasehold used. Many of our clients like to know the difference before purchasing their home due to the elements in which are attached to each. In this article Norwich Home Buyers will focus on what is a freehold property and also the advantages and disadvantages that are attached.
What Does Freehold Mean?
Freehold means that you own the property as well as the land in which it is built on. Freehold will refer to most houses as it is very uncommon for a flat to be under this banner. However, it is not unheard of. By owning the house and grounds freely you are in charge of how it is used and it is your responsibility for the upkeep.
How To Buy A Freehold
Buying a freehold property is one of the easier ways to buy property. This is mainly due to having no lease which can cause issues when looking to gain a mortgage. It also is great for those looking to be completely responsible for their home, and do whatever they see fit.
When it comes to buying a freehold property there are many ways in which you can utilise. Be that deposit, government schemes or even a guarantor mortgage with your parents. When it comes to purchasing ensure that you use your solicitor and estate agent have all the information you require.
If you are buying a share of a freehold then ensure you know what repairs have been made, and what the relationship is like with other freeholders in the location. As this could really impact you moving forward.
The Advantages Of A Freehold
Freehold usually refers to a house. One of the main advantages that you have when purchasing a freehold property is the ability to do whatever you want to it. As well as not being subject to any payments for upkeep or maintenance of the grounds in which it sits. When purchasing a freehold property the costs are also very clear. This makes it easier to budget.
By also purchasing a home which is freehold there are no end periods to you owning the land. This makes getting a mortgage a lot easier, and also does not have the associated risks of a leasehold.
The Disadvantages Of A Freehold
When it comes to purchasing a freehold you may find that the cost is a lot more as you also own the land the property sits on. A freehold property is great if you are looking for complete control. However, if you prefer communal living then a freehold property may not be for you.
What Is A Share Of Freehold/Commonhold
There is an option where you can purchase a ‘share of a freehold’. This is great for those looking to buy permanently as the lease cannot end, however this does not make the lease void. If this is the arrangement you enter into you will have more of a say when it comes to the upkeep of the building and land.
Be aware however, having a share of the freehold can also mean that if you find yourself against neighbouring leaseholders when it comes to repairs and work you may find it becomes expensive for yourself.
Commonhold is a share of freehold, but it usually means that other leaseholders in the building are also freeholders. This means all those who are classed as having a ‘commonhold’ will decide together about maintenance costs and repairs.
To Conclude
As you can see the process of what is a freehold property is also very straightforward. A freehold property lends itself very well if you are looking for a property and land in which you are able to have full control over. It also ensures there are no hidden costs throughout the process and also upon completion. At Norwich Home Buyers we have a number of freehold properties available so please feel free to Contact Us if you would like to find out more.