It can be tricky to understand the difference between leasehold and freehold properties but the knowledge is crucial for both owners and tenants. Leasehold means you own a property for a period of time. After this, ownership will revert back to the freeholder. With freehold you own the property outright and there are no time limits.
Leasehold properties can create additional challenges for landlords. They need to be aware of the status of the property and keep an eye on the amount of time they have on the lease. This can have an impact on their tenants if they are not careful. Additionally the leasehold can put conditions in place that restrict what alterations can be done to the property. This can create additional challenges for landlords.
Not surprisingly London is home to the highest number of leasehold properties in the UK. There are some areas within the capital that have 100% leaseholds, including King’s Cross Central. The surprise comes with the fact that some parts of Manchester in the North West have a high number of this kind of property. The link between the two cities? Both see a high number of new build apartments.
If you do purchase a leasehold property and seek to let it out there are a number of things you need to be aware of, including the higher costs you can encounter. Leaseholders can find themselves with charges for things such as ground rent and property maintenance. When they become a landlord they need to decide how to factor these into the rents they charge. Tenants are likely to need notifying about the additional costs they are shouldering.
At Finefair we offer a comprehensive service across the City of London and beyond, tasking our experienced team with effectively satisfying the needs of our clients. With us you can work with a dedicated lettings agent and find all of the support you need. We have a great knowledge of the Borough and work all across it, including in Barbican where 98% of properties are leasehold. If you have any questions please feel free to contact us.