There is a difference! It's totally different.
There are two common types of housing property rights in the UK:
1. Freehold (permanent land title)
most houses or villas are permanent land property rights, which also become permanent property rights or freehold rights. It represents that you own the property and the building land of the property.
If you want to purchase life tenure of the property, you have the responsibility to maintain your property and land, so you need to budget for these expenses before purchasing.
Benefits of owning Freehold:
don't worry about lease expiry
no need to deal with landlords
no rent, service charge or other rental costs
2. Leasehold (lease title with a term)
an apartment (Flat) or a small number of houses (House) is a land lease right with a number of years. It means that you have leased its building land from the landholder, so the apartment is subject to a property fee/management fee (Service Charge) and Ground Rent (Ground Rent). The general lease is between 80 years and 999. 999 lease, also known as 999 right, is the longest lease and is very valuable. To add, the 80-year Lease is a node. If the Lease is less than 80 years, you need to apply for a Lease Extension, which requires payment and a lawyer.
Pay attention when purchasing lease rights:
how many years are left in the lease of the property
how to Budget Service Fees and Related Expenses
the term of the lease may affect the value of the sublease of the property.
How important is the term of the lease?
If the lease is less than 70 years, it will be difficult to apply for a mortgage, because lenders usually need the property to operate for another 20-25 years after the loan ends. That means that if a person wants a loan for 25 years, the lease will take at least 50-55 years after the end of the loan. Therefore, if the lease period is less than 80 years, selling the property in the future will also become a problem.
How to extend the lease?
You can ask the landlord to extend the lease at any time!
After two years of owning the home, a qualified tenant would have the right to extend the lease to 90 years.
(Generally speaking, if the initial lease exceeds 21 years, it is regarded as a qualified tenant.)
however, the free holder (landlord) will also charge a service fee for the extension of the lease, which depends on the property.
How do you calculate the rental service fee?
The service charge varies from property to property and is used to cover the following costs:
• Maintenance of public gardens
• Electricity charges in public areas
repair and maintenance of exterior walls
other costs may include;
• Government rent
• Administrative fees
· Housing insurance (arranged by the landlord)
xiao Bian also learned that, as student apartment prices are generally high, many international students choose to rent their own houses outside school. Here, I recommend some of the larger rental websites in Britain. You can choose freely ~
Zoopla、Rightmove、On the market、Letting web
xiao Bian also sorted out some common problems by the way, you can ask the landlord or intermediary when renting a house.
When is the fastest time to check in?
What information should I submit for renting?
How to pay the deposit (room charge for no more than 5 weeks) and rent?
How to repair the broken household appliances? (The landlord is obliged to repair the household appliances in the property)
is Wifi installed in the house?
If the rent is withdrawn, inform the intermediary or landlord of the Notice time in advance (usually 1-2 months earlier, the Scottish government's rule is 28 days)
finally, be sure to check in! Take pictures!
(Amount of skirting, carpet, floor crevices, scratches, bathroom mildew spots, wall marks, curtain stains, water meters and electricity meters)
