Key Insights on Leasehold vs Freehold

If you're gearing up to sell your home, one of the most important aspects to grasp is whether your property is leasehold or freehold. This distinction not only affects the selling process but also plays a significant role in attracting potential buyers.

Freehold: The Full Package

Owning a freehold property means you own both the building and the land it stands on outright. This is the most straightforward form of ownership, commonly associated with houses. Buyers often prefer freehold properties as they come without the complications of ground rent or lease terms, making them a more attractive option.

Leasehold: Time-Limited Ownership

In contrast, leasehold ownership grants you the property but not the land it’s built on, which is more common with flats and apartments. Leaseholders typically pay ground rent and service charges, and the lease has a set term ranging from 99 to 999 years. When selling a leasehold property, it's crucial to inform buyers about the remaining lease years, ground rent, service charges, and any planned works or fee increases. Properties with short leases (under 80 years) might deter buyers or affect the property’s value, so extending the lease beforehand could enhance its appeal.

Be Prepared with Paperwork

For leasehold sales, obtaining a management information pack from the freeholder or managing agent is essential. This pack contains key details about lease terms, charges, and maintenance history. Delays in acquiring this information can stall the sale, so it's wise to request it early.

Understanding your property's tenure and communicating it clearly can prevent surprises and expedite the sale process. Whether your property is leasehold or freehold, being upfront and prepared ensures a smoother transaction. If you're considering selling, our team at Burnett's is here to guide you through every step of the process.


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