The two most common forms of property ownership in the UK are freehold and leasehold. We get asked about the differences all the time – here's a brief explanation!
Leasehold is a method of owning a property for a fixed period, often around 125 years if the home is new, though leases can be shorter. With leasehold properties, you do not own the land it is built on, the rights of which remain with the freeholder. Possession of the property will usually be subject to the payment of an annual ground rent and possibly monthly maintenance charges. When the lease expires, ownership of the property reverts back to the freeholder. Most of the flats/maisonettes and apartments in Andover are leasehold.
A drawback to leasehold is that as the lease period diminishes, particularly beyond 75-80 years, the property may become harder to sell or obtain a further mortgage on. Leases can be extended but this can be quite costly, so it is worth being aware of this from the start.
Freehold is the outright ownership of the property and land on which it stands. There is no time limit to the period of ownership.
Freehold is a more attractive option because it means you own both your property and the land on which it stands, without any time limit or maintenance/ground rent charges. Most houses are freehold.