What is a freehold?
When you buy a freehold property, you’ll own the property and the land it sits on. You won’t have a landlord or pay monthly service charges or ground rent. You can own the property for as long as you like.
Benefits of a freehold
Owning a freehold property has many benefits when compared to owning a leasehold. With a freehold, you own the house, there’s no rent, charges or leases to run down. It’s yours forever – or until you decide to sell.
What is a share of a freehold?
Having a share of a freehold means you own part of the freehold, instead of the owning it outright – this usually occurs when buying a freehold flat, rather than a house.
It can give you more control over your flat than a leasehold, as you’ll be directly involved in making decisions about the property and land.
If a freehold is split among lots of shareholders any decisions have to be made as a group before they happen.
Not all lenders have the same criteria for freehold mortgages, so be sure to check before buying a freehold property.
Can I buy a freehold flat I am currently leasing?
Buying the rights to your freehold flat – or even just a share – can be difficult. You might have to pay more if you already have a long lease.
However, you may find you end up saving on lease extensions and there is a chance that you could add extra value to the property.