Leasehold Ownership – Take it or Lease it

What is a leasehold property?

If you buy a property that is leasehold you own the property (you are the leaseholder) but you do not own the building or the land it is built on. You are purchasing a lease from the freeholder (the person who owns the building and the land) for the right to live in that property for a set number of years.

Leases are usually long term – often 99 or 125 years but can be up to 999 years.  The Lease is essentially a contract with the freeholder and details the legal rights and responsibilities of each party.

A short Lease, so a Lease with 80 years or less left on the term, may cause problems if you want to sell or mortgage your property.

Leasehold properties are often popular with first time buyers and people who are wishing to downsize.  A leasehold property is usually a flat and can be cheaper to buy than a freehold property.

The points in favour of a leasehold property are:

The downsides of a leasehold property are:

So the answer as to whether leasehold ownership is good or bad is that there are pros and cons and getting appropriate advice is the best way forward.

For leasehold property advice, give one of our friendly conveyancing team a call on 01323 727 321 or visit