What is a Leasehold Property?
A leasehold property is usually a flat or apartment where another person called the Freeholder owns the exterior and communal areas of the building.
There would be a license obtained when the property was new or converted. This would be for a set number of years. Usually for modern properties this would be 125 years, however, some leaseholds can be for up to 999 years.
On selling, the remaining period of the lease is carried over to the new leaseholder. Within the lease agreement there will usually be clauses that outline what can and can’t be done at the property. Ground Rent is collected as an annual amount by the Freeholder or Block Management Company in addition to Service Charges and such.
To find out more about leasehold properties or for any further advice, please do contact us. We’re here to help.