Buying and selling houses is a major part of real estate business. Technically there are two types of house owners, first is freeholder who have complete control of property and second is leaseholder who must pay annual ground rent to the freeholder of the property. Previously it was not too much trouble for leaseholders as the amount of rent was negligible but since past few years’ leaseholders are suffering because of leasehold scandal. In this article we are going get knowledge about all of it.Difference between leasehold and freehold
The house owner gets the complete control of the property if owner buy the freehold of the property. Which means owner do not need to ay any rent to anyone. With the freehold owner is free to do whatever with the property as he wants. He can modify the property without asking any permission from anyone.
On the other hand, leaseholder of the house is only tenant with rental for very long term. Leaseholder must pay annual ground rent to the freeholder of the property. He needs to ask permission for any modification he wants to do even it is the smallest one like fixing a letter box.Issues suffered by leaseholder
Previously freehold property owner charges almost negligible amount as annual ground rent from leasehold property owners and for any modification on the property leaseholder just need to ask permission from freeholder of the property without paying any amount. But since last few years leaseholder must pay 200 to 400 Euros a year as ground rent because of developer’s leasehold contracts. Not only this, but due to this leasehold scandal leaseholder need to pay for the permission for modification on the property every time they want to do it. Because of this leaseholders are suffering to much as they need to pay a large amount has very less or no control over the property