Leasehold - Term meaning ownership on property rather than tenancy
Leasehold means that a particular property is owned rather than rented but often the land on which that property is built is not owned directly by the properties owner, but instead is held under a lease for a set number of years. When the lease expires, the property returns to the freeholder, that is the person or business that holds the deeds to the land. Shops, business premises and flats are commonly sold on a leasehold.
Leasehold properties range in duration from between six months to nine hundred and ninety nine years.
Leasehold Example - Buy to Let or for Business
A business seeking to establish a shop premises or a property developer seeking to restore a building to let out to tenants will frequently purchase property on a leasehold basis.
The duration of the leasehold on a property could be short term or indeed long term. Leasehold properties range in duration from between 6 months to 999 years.
A consumer with a mortgage loan on property with a leasehold may find that the freeholder may be willing to assist with some of the financial costs involved in any ongoing developments that benefit the property.
Frequently a term or condition of a leasehold is that property is returned to or left in a suitable or particular state.
Leasehold Information
A property on which the leasehold is running down and will revert to the freeholder can find that its market value is being adversely affected.