What is the difference between Leasehold & Freehold?
In short, leasehold properties tend to be where there are ‘common areas’ for example shared gardens, shared access, and the cost of maintaining those will usually be shared.
It follows that the obvious property type to be leasehold are flats. There will invariably be some sort of ‘management company’ that will maintain the communal areas. As part of the conveyancing process, the buyer’s solicitor will look to establish what typical historical charges have been, and equally to see if there are any expected costs of note on the horizon.
Traditional houses (without communal areas) will typically (but not always) be freehold.
Joint Ownership – Joint Tenants or Tenants in Common?
If you are buying jointly with others, it is important that you carefully chose the right type of ownership for you. There are two types of joint ownership:-
- Tenancy in Common
- Joint Tenancy
Under a tenancy in common, the joint owners have distinct and separate shares that can be in any percentage amount, and will require a will to pass on death.
Under a joint tenancy, the joint owners will own equal amounts of the whole, and on death of any of the owners, their share passes automatically to the surviving owner(s) and can NOT pass any other way (eg by will). This legal principle is called the ‘right of survivorship’.
Your conveyancing solicitor can help you with that, or you might want to read more about joint ownership now >