Q&A What is the difference between freehold and leasehold?
The terms ‘freehold’, ‘leasehold’ and 'commonhold' refer to the different ways in which properties in England and Wales only can be owned. (Scotland follows separate regulations)
Property expert Nicholas Leeming provides an overview of the terms...
What is freehold?
Freehold title gives you absolute ownership of land and property. These properties are therefore more desirable and worth more.
What is leasehold?
Leasehold title gives you the right to occupy property for the period of the lease only after which it reverts to the freeholder. The leaseholder owns everything within the walls while the freeholder owns structure and the land which it is built on. The length of the lease has a direct impact on the value of the property.
What is a lease?
A lease entitles a tenant to occupy a property in return for paying a rent, subject to any conditions contained in the lease. A legally binding document stating the terms and conditions under which the property is occupied and used.
What is commonhold?
This form of ownership was introduced in September 1994 and applies to interdependent properties so allowing flats to be held on a freehold basis.
What is a Rent Act tenancy?
These are older leases which fall under the jurisdiction of the Rent Acts and which may, among other things, limit the amount by which rents can be increased at any one time.
What is an Assured Shorthold tenancy?
These are more modern forms of leases which most properties are now let under and are for a minimum term of 6 months.
What is Leasehold Enfranchisement?
This is the process by which a qualifying leaseholder may acquire the freehold for their property for a market value
Comments
Hi,
I didn't know before these three terms that relate to property. Thanks for providing me with this info about these terms.
Posted by: Natal property | July 28, 2008 07:44 AM