looking to buy a guest house/b+b just wondered if anyone can explain what lease/free hold means? do you make any money when you sell the lease? thanks
2007-01-01 06:29:25 · 6 answers · asked by tractortribe@btinternet.com 2 in Business & Finance ➔ Renting & Real Estate
Leasehold = you own the building for a set amount of time but not the land it stands on. So at the end of the lease you hand everything back, the building included.
Freehold = you own the building and land it stands on outright and keep it until you decide to sell it on.
2007-01-01 06:32:09 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Leasehold means the seller retains an insignificant holding on the property. Leaseholds can last for 100s of years, but as I said are of no great importance. Freehold is the opposite. You can buy/sell a freehold interest in a property. Small money.
2007-01-01 06:36:03 · answer #2 · answered by breedgemh_101 5 · 0⤊ 0⤋
When you buy a property which is leasehold it means that you own the property but that the land it sits on is leased from a separate owner therefor in order to sell it on again you must first seek the permission of the landlord, this may also be the case if any alterations are to be made. You may also experience difficulties getting a mortgage. Freehold mean that you buy a property and you own it as well as the site it is built on. Hope this helps!
~X~
2007-01-01 06:34:37 · answer #3 · answered by sezbobaloula 1 · 0⤊ 0⤋
You should talk to an estate agent or a solicitor to get the technical details and the law, but I think it goes like this. If you buy a lease (leasehold) you are in effect paying a long term rent. If you buy freehold I think it means you buy the place properly. But like I say check it out properly. Wikipedia may help, but don't put any money down until you are certain.
2007-01-01 06:37:37 · answer #4 · answered by funnelweb 5 · 0⤊ 0⤋
The only real benefits of a leasehold ,but check the contracts.
cheaper than freehold, not responsible for the structure of the buildings,
If you do decide to go down the leasehold road negotiate a longer leasehold term and rent reviews at longer reviews i.e every 5 years instead of 3 years.
Remember it is easier to buy than sell
2007-01-01 06:47:57 · answer #5 · answered by danny w 1 · 0⤊ 0⤋
Free Hold means its all yours.
Lease Hold means you only have it for a certain time, you'll have to pay service charges, you don't own the land etc. Its ok if it's a long lease like 80+ years.
2007-01-01 06:38:33 · answer #6 · answered by Anonymous · 0⤊ 0⤋