Buying the freehold helps leaseholders frustrated by rising ground rent and service charges
A leasehold property is, in effect, a long term rental in the sense that you have purchased the right to live there or to rent it out for a set period. You do not however own the land on which the property stands and, as a result, are required to pay a ground rent and service charges to the freeholder.
Evading rising ground rent and service charges is just one reason to buy the freehold for your property. The other, more importantly, surrounds its value as GW LET solicitor, Rob Denman, explains:
“Owning a leasehold property with less than 80 years on the term will impact on your ability to sell or remortgage your property and, as a consequence, significantly diminish a property’s value.
“As a member of the Association of Leasehold Enfranchisement Practitioners (ALEP), we can provide specialist legal advice on lease extensions, individual and collective enfranchisement and Leasehold Valuation Tribunal (LVT) cases.”
Content correct at time of publication