Are you in search of a property that you can take on lease? Are you having queries regarding buying a leasehold property? As discussed in our previous blog, let us help you find the answers to your questions, you have been looking for. The following section can help you with more clarity on leasehold property.
What is a leasehold property?
The meaning of Leasehold property is that, if you have taken a property on lease from the freeholder, or the owner of the property for a specific duration. The leases are usually for a long term however, they are customizable depending on the freeholder.
- There is a contract or an agreement that is made between the leaseholder and the freeholder, which defines the legal rights, and the responsibilities of both parties, i.e. leaseholder and freeholder.
- Maintenance of common areas of the property is usually the responsibility of the freeholder. This would include, maintenance of the entrance and staircase, terrace and walls. Still, if the leaseholder claims the rights to manage the property, then in that case, it becomes the responsibility of the leaseholder to take care of the common areas of the property.
- Maintenance fee, annual service charges, and insurance of the property to be paid by the leaseholder only.
- The leaseholder is liable to pay the annual ground rent to the freeholder.
- The freeholder has the authority to grant permission for any major work that are requested by the leaseholder.
- The freeholder can set restrictions for the leaseholder as per their requirements, e.g. no permission for keeping pets.
- In case, the leaseholders do not abide by the rules and responsibilities assigned by the freeholder regarding the property, e.g. not paying the rent or the maintenance charges, the leaseholder may have to face the loss.
Now that you have more clarity on what leasehold property stands for, you may go ahead and buy your dream home with much confidence and general awareness. Hope this was pretty helpful for you. Stay connected and be safe.
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