Will You Benefit From The Freehold Right to Buy?

Many people assume that buying a flat means agreeing to a leasehold arrangement. In many cases this is true. It is why it is always important to read the terms of such a lease before making your purchase, because it enables you to see how long the lease has left to run.

However there is another possibility. Some flats are now coming up for sale on a freehold basis. This occurs when the current or previous owner has decided that buying a freehold on the property is a good idea – and they would be right.

If you could make a list of a similar array of flats, for sale either with a freehold or a leasehold basis – you would no doubt see that the selling price for those with the freehold attached would be higher. It is not difficult to see why this would be the case. A flat with a leasehold arrangement would decrease in price if the leasehold happened to be particularly short. A freehold however means that the freehold right to buy had been exercised and future owners would not have to worry about a lease running out.

There are many reasons why deciding to buy a freehold has become popular in the last few years. The idea of proper ownership is definitely a big plus, and owing to the Leasehold Reform Housing and Urban Development Act 1993 it is possible to make this happen. Buying the freehold is a good decision to make if you can finance it, because it improves the selling price and makes your flat more appealing to potential future buyers. It also means you have more control over the maintenance of your home, since you will no longer have a landlord to control things.

It should not come as a surprise to learn that thousands of flats every year go through the freehold right to buy process. With many advantages to doing so you can see that flat owners are willing to go through the legal process in order to attain their right to buy. Deciding to buy a freehold gives them more security for the future, and it may provide you with more security in many different ways as well. The more you look into the idea of doing this, the more you see how much it makes sense to ensure you own your flat outright. It is definitely preferable to the alternative of leasing it, even if it is for a long time.