Are you a leaseholder considering the idea of owning the freehold to your property? While leasehold properties have their advantages, such as shared maintenance responsibilities, they can present challenges. Purchasing the freehold of your property offers several benefits that can significantly enhance your homeownership experience. In this blog, we’ll explore eight reasons why you might want to make this strategic move.
Service Charge Savings
Purchasing the freehold of your property can lead to substantial reductions in service charges. Leasehold properties usually require owners to pay a share of maintenance and management costs, but by acquiring the freehold, you’ll have greater control over the property’s financial affairs, which can lead to lower service charges.
Control Over Maintenance Costs
As the freeholder, you have the authority to make decisions regarding maintenance costs and choose contractors or vendors for repair and upkeep services. This allows you to make informed decisions and ensure the property receives maintenance that accommodates your budget.
No Ground Rent
One of the primary advantages of buying the freehold is the removal of annual ground rent payments. This is a financial payment made by the leaseholder to the owner of the freehold and these payments can add up over time, making owning the freehold more financially beneficial.
Lease Extension Savings
If the remaining lease term falls below 80 years, extending it can be costly. Acquiring the freehold eliminates the need for lease extensions, providing long-term security for your property and potentially saving you money.
Increase in Property Value
Owning the freehold can enhance the value of your property. It can be more appealing to prospective buyers, potentially resulting in a higher resale price if you decide to sell in the future.
Smoother Property Sales
When selling a property with a shorter lease, potential buyers may be deterred due to the uncertainty of lease extension costs or negotiations. Owning the freehold can make the sales process smoother and more attractive to potential buyers.
By acquiring the freehold, you eliminate the influence of the management company, which typically makes decisions on behalf of the leaseholders. This increased control allows you to make decisions that align with your best interests and the well-being of the property.
Freedom of Lease Conditions
Leasehold properties often come with specific conditions, such as restrictions on pet ownership or the need for consent to make alterations. Purchasing the freehold can remove or adjust these conditions, providing you with more freedom and flexibility in how you use, modify and live in your property.
Get in touch
Owning the freehold of your property can lead to financial savings, increased control and a smoother homeownership experience. At CWC Solicitors, our experts are well-versed in freehold acquisition and can give you the appropriate help and advice. Reach out today.