Purchasing a leasehold property has many advantages but before we get to the advantages it will be wise if you equip yourself with some information about leasehold properties so that you can be sure of avoiding a ground rent scandal. The first thing is you should always check the contract with a third eye before signing it because some freeholders are very cunning and they are including a clause that allows them to double the ground rent after like 10 years.
Another thing is that the landlord does not have any right to add ground rent if that was not mentioned on the lease contract, you are just supposed to pay what is indicated on the contact and if by any chance he tries adding the ground rent, you have every right to take legal action.
And the last thing is if you buy a leasehold property from another leaseholder the time remaining on his lease will be your time because time does not begin to count again.Pros of buying a leasehold property.
The reason why many people go for this properties is that they are cheaper as compared to freehold properties.
You will not need to worry about the building maintenance because the landlord will take care of that. However, you will be required to pay some amounts as service charge.
Leasehold properties are the perfect choice for those looking for short term accommodation. You don’t need to invest a lot of money on a freehold property if you will not be staying in the place for a long time. If you stay on the property for a long time and you feel like you are in love with then place, you can follow the procedure required and purchase the property as a freeholder.