The sales of property are either on freehold or leasehold basis. When you buy a freehold property you will own the property and the land that it sits on. And when you buy a leasehold property you will own the property but not the land it sits on. It is because of this that you will be required to pay ground rent to the landlord or the person who owns the freehold. Leasehold scandal is an issue that can arise during this process..
The solicitor who will help you purchase the property will be able to explain to you the clauses on the lease term so that you don’t end up finding yourself in a leasehold scandal after a certain number of years when the ground rent is increased without your knowledge. The apartment buildings are usually sold on terms of lease that allows you to own the building for between 99 and 999 years. When you buy the leasehold property, you have every right to live in that building for the duration of the lease but you also have an obligation to pay ground rent annually the exact amount that is stipulated on the lease.
Before purchasing a leasehold property it is very crucial to know who the freeholder is so that you don’t end up in a property that is managed by an irresponsible freeholder. Make sure that you understand all the clauses of the lease because some developers nowadays are inserting a clause that allows them to double the ground rent after 10 years.
Paying the ground rent is a must and if you don’t pay the ground rent the freeholder has every right to take you to the court so that you can be forced to pay what you owe or reclaim his property back. Still on paying ground rent, you have the right to challenge the freeholder if you feel that the ground rent you are supposed to pay is unfair.