The term purchase freehold means that somebody is the sole owner to a building together with the land it stands on. In leasehold properties, the land remains owned by a landlord who is the freeholder. In freehold purchasing, the ownership of the property reverts back to the landlord once the lease extensions runs out.
If somebody owns a home on freehold basis, he/she owns the building and the land stands it stands on. This becomes a part of a landlord’s estate and it can be passed on to his heirs when he/she dies. The biggest disadvantages to owning a purchase freehold property is that the repairs are up to the landlord to pay for incase they occur. However, there are advantages that come with purchase freehold.
Advantages of purchase freehold
· Purchase freehold houses or flats with a share of the freehold are more desirable compared to leasehold properties and are worth more value.
· Purchase freehold properties are not subject to various charges that some landlords apply and are difficult to challenge.
· In purchase freehold property, freeholders do not necessarily have to deal with landlords. This is so because they have an overall responsibility for the share of the property.