Leasehold vs Freehold: Key Seller Insights

Freehold: The Full Package

Owning a freehold property means you own both the building and the land it stands on outright. This is the most straightforward type of ownership, typically associated with houses. Buyers often favour freehold properties as there are no ground rent charges or lease terms to worry about, making the transaction simpler and more appealing.

Leasehold: Time-Limited Ownership

Leasehold ownership means you own the property but not the land it’s built on. This is more common with flats and apartments. Leaseholders usually pay ground rent and service charges, and the lease has a fixed term—ranging from 99 to 999 years. Understanding these terms is crucial for both sellers and buyers.

Why It Matters When Selling

When selling a leasehold property, potential buyers will be keen to know:

• The remaining years on the lease
• The ground rent and service charges
• Any planned works or fee increases

Short leases, typically under 80 years, can deter buyers or reduce the property’s value. Extending the lease before selling could enhance your property’s attractiveness.

Be Prepared with Paperwork

For leasehold sales, you’ll need a management information pack from the freeholder or managing agent. This includes crucial details about lease terms, charges, and maintenance history. Delays in obtaining this can hold up the sale, so request it early.

Understanding your property’s tenure and communicating it clearly can help avoid surprises and speed up the sale. Whether leasehold or freehold, being upfront and well-prepared puts you in the strongest possible position. If you need expert guidance, we at Maddisons Residential are here to help make your selling journey smooth and successful.