A: Here is a brief explanation of the various ways to own a property and the benefits of doing so.
● Leasehold: Buying this way means you have the right to live in it and occupy the land it stands on for a fixed period of time – the length of your lease.
This can be a varied term but is commonly 99 years, 125 years or 999 years. This type of property will incur service charges for the services rendered.
A managing agent will look after the building and, depending on the type of development, you will be charged accordingly, usually by the square footage of the actual apartment. You will also incur a separate ground rent charge payable to the freeholder for this type of property.
● Freehold: When you buy a freehold property you own the property and the land and are responsible for maintaining them. This is cheaper to run and gives you more power.
● Share of freehold: This is when the freehold of the property is owned by a limited company and the shareholders are the owners of the properties concerned.
This is considered a very favourable way of owning property. Owning the share means you have more control over what happens within a development. Service charges may still apply as shareholders will pay for upkeep.