2007-01-17 01:27:08 · 3 answers · asked by Plato 5 in Business & Finance ➔ Renting & Real Estate
Freehold property is easier to sell and has less restrictions of use. Leasehold property generally have rules and regulations that you have to comply with. New leasehold leases are generally 99 years 125 years or 999 years when a lease falls below 65 years a mortgage company will probably not lend against it.
2007-01-17 02:15:40 · answer #1 · answered by Jeff V 2 · 1⤊ 0⤋
Agree with Jeff V's answer except some mortgage companies wont lend if the lease is less than 70 years.
One exception where a property needs to be leasehold and that is a flat. This is because any potential disputes can be resolved legally in the terms of the lease, ie who cleans the stair between floors 2 and 3 etc. The length of time left on a lease still applies to flats.
2007-01-17 03:17:17 · answer #2 · answered by dbharrold 2 · 1⤊ 0⤋
The answer does vary based on what is common in the market. In London and many parts of the UK leasehold properties are common. In a multi-unit building freeholds are difficult to finance. The lender does not want to get stuck taking care of the common areas as a freehold owner if they take a property back.
In the US most deals are freehold. Leasehold property (residential sector) are much more difficult to sell. People like to buy what they are used to. If you were in Hawaii leasehold is pretty common so there are different options there.
2007-01-17 08:52:56 · answer #3 · answered by Anonymous · 1⤊ 0⤋