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Pros and Cons of Buying Freehold Properties

Posted by Nulands on July 4, 2024
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Thinking about buying a freehold property? It’s a big decision and one that comes with its own set of advantages and disadvantages. Let’s chat about what freehold ownership means and the pros and cons that come with it.

What is a Freehold Property?

When you buy a freehold property, you own the building and the land it sits on outright. There’s no lease to worry about expiring, and you have more control over your property. Sounds good, right? But like anything, there are upsides and downsides to consider.

The Pros of Buying Freehold Properties

Complete Ownership

The biggest advantage is full ownership of both the property and the land. This means you’re not paying ground rent or service charges, and you have total control.

No Lease Worries

Unlike leasehold properties, you don’t have to worry about leases running out or the costs involved in renewing them. This can make freehold properties more appealing in the long run.

Freedom to Alter

With a freehold, you have the freedom to make changes or improvements to your property without needing permission from a freeholder. Want to extend your kitchen or add a conservatory? Go for it!

Potentially Better Value

Freehold properties often retain their value better and can be easier to sell, as there are no lease complications that might put buyers off.

The Cons of Buying Freehold Properties

Higher Upfront Cost

Freehold properties can be more expensive compared to buying leasehold properties. The initial investment is typically higher, which can be a barrier for some buyers.

Maintenance Responsibility

As the owner, you’re responsible for all maintenance and repairs. This includes the exterior of the building, the roof, and the land. It can be a lot to manage, especially if unexpected issues arise.

More Time and Effort

Managing a freehold property can be time-consuming, especially if it’s a larger home with a garden. This is something to consider if you prefer a more hands-off approach.

Pros and Cons of Buying Freehold Properties(Comparison Table)

Here’s a simple table to summarize the pros and cons of buying a freehold property:

ProsCons
Complete OwnershipHigher Upfront Cost
Full control over property and land.Freehold properties are generally more expensive to buy initially.
No Lease WorriesMaintenance Responsibility
No lease expirations or renewals to worry about.All maintenance and repair costs fall on you.
Freedom to AlterMore Time and Effort
Make changes without needing permission.Managing and maintaining the property can be time-consuming.
Potentially Better Value 
Often, they retain value better and are easier to sell. 

Final Thoughts

Buying a freehold property gives you a lot of control and peace of mind since you own the land and the building outright. However, it does come with higher initial costs and more responsibilities. If you’re ready for the commitment and like the idea of having full ownership, a freehold property could be a great investment.

Take the time to weigh these pros and cons against your personal situation and long-term goals. Whether you choose freehold or another type of ownership, making an informed decision will help ensure you find the property that’s right for you.

Thinking of buying land in Kenya? Let our expert team guide you diligently through the process. Give us a call at  0708 592177 / 0740212121

Pros and Cons of Buying Freehold Properties-Frequently Asked Questions (FAQs)

1. What does owning a freehold property mean? 

Owning a freehold property means you own both the building and the land it sits on outright, with no time limit.

2. Are freehold properties more expensive than leasehold properties? 

Generally, yes. Freehold properties tend to have a higher upfront cost compared to leasehold properties.

3. What are the main benefits of owning a freehold property? 

The main benefits include complete ownership, no lease worries, freedom to alter the property, and potentially better resale value.

4. What responsibilities come with owning a freehold property? 

As a freeholder, you are responsible for all maintenance and repairs of the property and land, including structural repairs and exterior upkeep.

5. Can I make changes to a freehold property without permission? 

Yes, you can generally make changes or improvements to a freehold property without needing permission from a landlord or freeholder.

6. How does the value of a freehold property compare to a leasehold property? 

Freehold properties often retain their value better and can be easier to sell, as there are no lease complications that might deter buyers.

7. Do freehold properties have any ongoing fees like leasehold properties do?

 No, freehold properties do not have ground rent or service charges, but you will need to budget for maintenance and repairs.

8. What should I consider before buying a freehold property? 

Consider the higher upfront cost, the responsibility for maintenance, and the time and effort required to manage the property.

9. Is it easier to get a mortgage for a freehold property? 

Yes, it is generally easier to get a mortgage for a freehold property as lenders see them as less risky compared to leasehold properties with short leases.

10. Are there any restrictions on selling a freehold property? 

Generally, no. Selling a freehold property is typically straightforward, without the complications that can come with leasehold properties.

 

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