legal property ownership

If you are looking to buy or sell a house, there are legal issues to consider. There have been issues that ground rent scandal proves that poorly advised new homeowners have caused some troubles. Because they have no idea about the rules, signing up to a leasehold mortgage with limiting terms is not a good idea. Because this leads to disproportionately increasing rent which in many cases prevents the homeowners to sell their property which at the end is a huge damage to them and costs them more money. When you want to buy or sell a property it is important to make sure that the whole process is not damaging anyone or is not unfair.

Types of property ownership

  • Freehold
  • Leasehold
Difference between freehold and leasehold

If you own a freehold to a property this means that the building and the ground it is standing on, are all yours. However, if you own a leasehold to a property, it means that you rent the ownership of the property from a freeholder. Just like when you rent a property from a landlord you can rent a property from a freeholder which makes you a leaseholder. If you are a leaseholder there are certain rules and restrictions on what you can do with the property and what you can not do. You need to pay really good attention to those restrictions by first learning them and then obeying them to avoid any sort of inconveniences related to ground rent scandal or any other issues. These restrictions can be made by freeholders that limits many things such as the color of curtains a leaseholder can use or what kind of a furniture can be used in the balcony. A freeholder wants his/her property to have a nice appearance so they are allowed to limit a leaseholder on some levels.