21/07/2016
When it comes to purchasing a new home, it’s important that the buyer understands all of the implications and costs that come with it.
Freehold and leasehold are two terms that we find that some – particularly first time – buyers don’t understand. But it can mean the difference between owning your home outright and having a ‘landlord’ – so it’s imperative to understand these two types of legal ownership.
So what are they, and what do they mean for a buyer?
FREEHOLD
If you buy a ‘freehold’ property, it will mean that you own the building and the land that it stands on outright, and your name will appear on the land registry. Freehold ownership is most common when buying a ‘whole’ house.
So what does it mean?
LEASEHOLD
Leasehold, on the contrary to freehold, is where the property owner will ‘lease’ the land from the freeholder. The lease is usually long term i.e. anything from 99 – 120 years, however, they can sometimes be as short as 40 years.
A leasehold term is compulsory for shared buildings such as apartments and split properties.
So what does it mean?
Empire Works, our latest development, will include 24 apartments that fall under leasehold ownership. So, if you’re thinking about buying an SB Homes property, here’s what to expect:
If you want any more information about the differences between leasehold and freehold, or if you want to enquire about buying a new home in Slaithwaite, please contact Becki on 01484 844311 or becki@sbhomes.co.uk.