2006-08-19 00:02:01 · 7 answers · asked by olugediya 1 in Business & Finance ➔ Renting & Real Estate
TENURE:
In a Leasehold property (e.g a flat, maisonette), you literally buy the right to live in that building for the term of the lease - which can be anything up to 999 years. You pay ground rent and/or a service charge (to maintain the building). When the lease expires, you vacate the building and it reverts back to the landlord.
In a freehold property, you "effectively" own the land so the property is yours - and you pay no ground rent or service charge. In reality, freehold means you're leasing the land from the crown - that is how the state enforces a compulsory purchase in the event of wanting to build a bypass etc.
CHAINS:
If Mr & Mrs Smith are first time buyers, buying a property off Mr Jackson who is emigrating overseas, then there is no chain - as the Smiths don't have anything to sell, and Mr Jackson doesn't have anything to buy (until he arrives in his new country).
In this example; if Mr Jackson wasn't emigrating, and was buying a property off Mrs Williams - who is selling up to move in with boyfriend, then there is said to be a chain of 2 properties - The Smiths being the bottom of the chain, with Mr Jackson in the middle and Mrs Williams being the top of the chain.
If Mrs Williams and her boyfriend split up, and Mrs Williams decided to stay in her own property as a result - withdrawing off the market, then the chain would fail - as Mr Jackson would have nowhere to move to - therefore preventing the Smiths from making their move. If Mr Jackson suddenly finds another property and his offer is accepted, then the chain will move again.
A chain can consist of several properties, and it can be very worrying as the larger the chain - the more likely there is for something to go wrong, or be subject to an uneccessary delay.
2006-08-19 11:04:59 · answer #1 · answered by nemesis 5 · 0⤊ 0⤋
Freehold is where you own the entirity of a building, i.e. you buy a house and it's all yours.
Leasehold is usually used when buying a flat or apartment within a block, it means you own the flat but the exterior of the building it's in and the communal areas are owned by a higher power. In this case you will usually pay an annual service charge to the building owner for maintenance, etc.
A chain is where someone is both buying and selling a house, this can create problems with the buying process because you will need to be living in the house you are selling until the house you are buying is yours and you con move out.
Having no chain means that you are not tied into two transactions. If you are buying a house off someone and they already have somewhere else to go, there will be fewer problems when it comes to setting a date for completion.
2006-08-19 09:49:27 · answer #2 · answered by Lewiy 3 · 0⤊ 0⤋
leasehold is where the ground on which the property is built is subject to a lease, usually 99 years from initial lease date. Check how long is left on the lease and is it renewable. Freehold means that the ground is sold with the property. No chain means that the seller is not ( or does not want a buyer who is) in a chain thatis being dependant on a number of people buying/selling properties to be able to complete the sale.
2006-08-19 07:17:01 · answer #3 · answered by Anonymous · 0⤊ 0⤋
leasehold is owning the property
freehold is owning the building
(e.g: one house converted into two flats, both bought by different people. Both own the leasehold for their flat, but someone totally different may own the freehold of the whole property. this is why when you live in flats you may have to check with someone before replacing carpet with floorboards or painting the outside)
the chain thing is the amount of people who are in a chain of buying (need to sell one to buy another) no chain is generally first time buyers or people who dont need to sell the first property to buy the second.
2006-08-19 07:16:39 · answer #4 · answered by ladyjinx 3 · 0⤊ 0⤋
Leasehold is like borrowing a property for a set number of years.
Freehold is buying the property outright.
A chain is where the person, whose house you are buying is in the process of buying another house and so on.
2006-08-19 07:08:10 · answer #5 · answered by JeffE 6 · 0⤊ 0⤋
leasehold-you buy the lease.
freehold-it's yours when you pay for it
no chain-there's no other people buying and selling at the same time
2006-08-19 07:06:11 · answer #6 · answered by Anonymous · 0⤊ 0⤋
there is a book about it at http://www.unclaimedhouses.com
2006-08-19 18:45:48 · answer #7 · answered by Piffle 4 · 0⤊ 0⤋