It’s fair to say that if we were designing a system of property ownership for the modern era, leasehold would not be it. It’s quirky, archaic and still rather prone to exploitation, but successive governments have worked hard to iron out many of its problems, and it can be a perfectly practical way to own property – so long as you understand your rights.
The UK Government has announced that all newly built homes must be sold under a freehold basis as Housing Minister James Brokenshire continues with plans to end unfair practices in the housing market. While the private sector rental market remains firmly in his sights, the Housing Minister is also working towards creating a fairer system for home-buyers and owners, too.
Across the UK, particularly in cities, many properties are owned in a leasehold capacity. While the leaseholder can make certain changes to their home, there are rules in the leasehold agreement and the freeholder is also responsible for certain details.
Some people are calling it the ‘PPI of property’. But why are new-build houses being sold as leasehold rather than freehold properties? What’s wrong with this? And what might the future hold?
If you live in a leasehold flat, it’s highly likely you’ve come across Section 20 consultations, and if you haven’t then something could be amiss with the way your building is being managed. But not everyone understands what the rules are and when they’re applicable.
If you own a leasehold flat, there are plenty of reasons why you might want to get possession of the freehold, and several ways to do it. One of these methods is called the right of first refusal.
