03. Long leasehold house
A long leasehold house is a type of property ownership that combines elements of freehold and leasehold arrangements. It grants you ownership of the property for a substantial period while still having a lease agreement with the freeholder.
Key features of long Leasehold houses:
| Ownership period | Unlike traditional leasehold properties with shorter lease lengths, long leasehold houses usually have lease terms that can extend for several decades, often 100 years or more. |
| Ownership rights | During the lease period, you have ownership rights to the property similar to a freehold property. This includes the right to occupy, use, and maintain the property. |
| Lease conditions | The lease agreement may include certain conditions and obligations that you need to adhere to, such as paying ground rent and complying with maintenance requirements. |
| Ground rent | Similar to leasehold flats, long leasehold houses might involve paying ground rent to the freeholder, although the amounts are often nominal. |
| Leasehold valuation | The lease term remaining can impact the property's value. As the lease term decreases, the property's value may decrease as well. |
| Extending lease | If the lease term is running low, you might have the option to extend it, subject to certain conditions and costs. |
Determining lease terms and obligations
To understand the specifics of your long leasehold house, review the lease agreement. This document outlines your ownership rights, obligations, and any conditions you need to meet.
Understanding ground rent
Ground rent is a nominal fee paid to the freeholder. It is essential to know the amount and frequency of ground rent payments as stipulated in the lease agreement.
Lease extension considerations
If the remaining lease term is a concern, consider the option of extending the lease. Extending the lease can help maintain the property's value and your ownership rights over the long term.
Seeking legal advice
Given the complexities of leasehold arrangements, especially for long leasehold houses, seeking advice from a conveyancer or solicitor is advisable. They can guide you through the lease terms, any obligations, and help you make informed decisions regarding your property's ownership and potential lease extension.