Ten facts about leasehold
- In 2004 Leasehold is still the only way to ‘own’ a flat, (sometimes a house).
- Leaseholders do NOT actually own the property, just permission – subject to conditions – to live there for the time left on the lease.
- Leaseholders buy a time period, not a property.
- The property owner is still a freeholder, who is also in charge.
- Lessees pay the freeholder for the upkeep of the building.
- The less time left on the lease, the less it’s worth, because it has to be returned (free of charge) to the freeholder, who sells it again.
- When their lease ends, their homes are still there but lessees have to leave, or may rent them back from the freeholder but without any long term security.
- As time passes, maintenance of the building and services costs more. The leaseholder pays for this, but on the freeholder’s orders.
- As time passes the lease also gets shorter, and a leasehold property loses value in two ways: it costs more to maintain, and the freeholder can charge more to lengthen its lease.
- There are over five million leaseholds in England. The numbers are increasing daily. In 2015 property developers created more new leaseholds than separate houses.
View a copy a copy of the Leaseholders Guide by Shula Rich
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