Freehold And Leasehold - What's the difference?

What is a freeholder?

 

If you are the owner of the freehold, this means that you own the building and the land that it is on. You take the full responsibility for the land and the building, such as any maintenance issues to do with the building structure.

What is a leaseholder?

What is a leaseholder?Leasehold is when you simply have a lease from the freeholder to live in the building. The leases are usually long term, the maximum can be up to 999 years and can be as short as 40 years. The leaseholder and the freeholder have a signed contract which sets out all the legal rights and responsibilities for both of them. The freeholder will normally still be responsible for the main parts of the building e.g. entrance hall and exterior walls and roof etc. Sometimes the leaseholder may have claimed their right to manage which means that instead of the freeholder being responsible for those areas of the building then the leaseholder will have that responsibility. Leaseholders will have to pay maintenance fees, their share of the buildings insurance and annual service charges. Leaseholders sometimes have to pay annual ground rent as well. If the leaseholders fail any of the terms of the lease then the lease can become forfeit immediately. There can often be some bother between a freeholder and the leaseholder if one feels the other isn't upholding their maintenance responsibilities.

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Published on 29 April 2016

Source Trinity Sales Wakefield

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