Leasehold properties can sometimes be misunderstood. But community living, maintained shared facilities and sometimes lower entry costs that some leasehold properties offer, can be the perfect lifestyle for older buyers, people looking for apartment living or those with a smaller budget.
Here’s a clear, no-nonsense guide to what leasehold means, what to look out for and how we can help you navigate the buying or selling process with confidence.
What is a leasehold property?
A leasehold property means you own the property itself, like a flat, maisonette or a house, for a set number of years – but you don’t own the land it’s built on. Instead, you lease the property from the freeholder (sometimes called a landlord). And that’s the key difference between a leasehold and a freehold – where you own both the property and the land it stands on.
The length of the lease can vary, but commonly lasts 99, 125 or 999 years. When the lease eventually runs down, ownership reverts to the freeholder – unless you extend it.
Leasehold properties can suit many different lifestyles such as people looking for apartment living, busy professionals who value convenience and retirees who want a secure, manageable home.
The pros & cons of leasehold properties
Leasehold properties have plenty of positives:
- Community living – shared spaces encourage a sense of community, especially in retirement developments.
- Shared facilities – lifts, landscaped gardens, lounges or security systems that you wouldn’t usually get with a freehold house.
- Lower entry cost – leasehold properties can be more affordable than comparable freeholds.
- Professional management – external companies often handle maintenance, which saves time and hassle.
Like with anything, there are challenges too:
- Extra costs – ground rent and service charges can add to your monthly outgoings.
- Restrictions – you may need permission for alterations such as extensions, major renovations or keeping pets.
- Resale difficulties – properties with shorter leases (typically under 80 years) can be harder to sell and expensive to extend.
- Less control – decisions about shared areas are often made collectively or by the managing agent.
What costs are involved?
Leasehold properties often come with ongoing costs. These may include:
Ground rent – a fixed payment to the freeholder. Click here for more info.
Service charges – covering the upkeep of communal areas like hallways, gardens, lifts or car parks. Find out more here or check your lease for full details.
Management fees – paid to the managing agent or freeholder for administration.
Resale charges – sometimes payable when you sell, to cover the freeholder’s costs.
These ongoing costs may appear as a challenge for some, but the lower entry cost for leasehold properties compared to freehold offers good opportunities for sellers, or buyers with a smaller budget. If you’re considering buying a leasehold, just make sure to factor these ongoing costs into your budget.
Asking the right questions
For many buyers and sellers, the worry lies in the unknown. What fees are you liable for? How long is left on the lease? Are there restrictions that could affect your lifestyle or the property’s value?
This is where local expertise makes a real difference. In Newcastle-under-Lyme and surrounding areas, we regularly advise clients on leasehold sales and purchases. Whether it’s retirement apartments at Adlington House or Merrial Street, or flats in the town centre, we’ve guided homeowners through the process step by step.
How we can help
As an independent estate agency with 30+ years’ experience in the local market, it’s our job to make things clear and stress-free. When it comes to leaseholds, we can:
- Highlight the right questions to ask – how many years are left on the lease? Is there any planned increase in service charges? Are there restrictions on making alterations to the property? We’re here to support and advise you so that you get all the information you need to make the right decision.
- Support sellers in marketing leasehold properties and providing the right information to help find the right buyer, as well as selling any freehold properties.
- Work with solicitors and managing agents to keep the process moving smoothly. We’re on your side from start to finish and provide full chain management beyond offer acceptance.
Our focus is always on honesty, transparency and giving you the confidence to make the best decision for your situation. Find out more about our estate agency in Newcastle-under-Lyme.
Start your next chapter today
Leaseholds are a long-established form of property ownership that suit many lifestyles. The key is awareness – know what you’re buying, budget for the costs and ask the right questions. With the right advice, leasehold properties can be successfully bought and sold. Thinking of buying or selling a leasehold? Speak to our friendly team today on 01782 615530 or explore our homes for sale here.
