Freehold, leasehold & commonhold - what does it all mean?
Freehold means you own the land and the property completely and you are responsible for all maintenance and repairs.
Leasehold means the freeholder agrees to sell you a lease on the property for a specified number of years. The lease will state who is responsible for maintaining the property and grounds. You may have to pay ground rent and service charges.
Leases are initially for 99 years or 999 years, with the length reducing each year. Recent laws have increased the rights of leaseholders, enabling them collectively to either buy the freehold or seek an extension to the original lease. The laws are complex, so do get independent legal advice. The Leasehold Advisory Service (LEASE) website,www.lease-advice.org, is a good place to start.
Commonhold applies to flats. It means you own the freehold to the flat and share the freehold of the communal areas and grounds with the other owners. You don't have to pay service charge or ground rent, but you will have to contribute towards the commonhold association fund for things like maintenance and insurance.
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