Distinguishing Freehold from Leasehold
First time homebuyers usually have a hard time differentiating freehold from leasehold. Fortunately, it is really not that tough to understand those terms as they differ in many ways. When you purchase a property with freehold, you have all the rights to the building and the land that it sits in. No one can claim this property and you can pretty much do everything you like with it so as long as you don't violate the law. On the other hand, if you are a leaseholder, you can't expect the same rights as a freeholder. Lease terms only allow you to stay in the property for a certain time. It may range from months to centuries but the ownership will never be entitled to you. Once the term is over, the property will be claimed by the owner and it may be opened for another lease term. Mortgage companies do not usually offer mortgage if the lease is too short since they have little protection. If you have purchased a property with leasehold, you may also incur annual fees for the service charge and maintenance. Freehold properties are a lot less complicated than leasehold in terms of conveyancing. Though leaseholds are problematic, you will find several mortgage companies that actually lend properties on long term leases. Before signing for a lease, be sure to watch out for hidden fees as this may greatly affect the value of your investment. Pick a savvy conveyancing solicitor to ensure your interests are protected.