Problems Faced By Leasehold House Owner

Freehold and Leasehold are mainly the two types of house owners. Freehold house owner has more control over the property than leasehold house owner. In the past leasehold house owner need to pay very less amount to the freehold owner of the property as ground rent and for any modification he just needed to ask permission from freeholder and need not to pay any amount for that. But this picture changed due to leasehold scandal in last few years. Let’s see some issues faced by leasehold house owners because of this.

A huge increase in annual ground rent

In last few years house developers started to release leasehold contracts in which they inserted some clauses. According to these contracts leasehold house owner needs to pay near about 200 to 400 Euros as annual ground rent. And sometimes it increases by considerable amount every year. This is the very first and main issue leasehold house owners are facing because of leasehold scandal.

Permission fees for house modification

We always want some modification or decoration or building something extra in our house. As leasehold house owner has less control over the property they need to ask permission from freehold house owner for such things. In the past leaseholder just need to ask permission and if freeholder approves it they were good to go. But in last few years leasehold house owner needs to pay a considerable amount for this permission every time.

Buying freehold of the property becomes expensive for leasehold owners

If someone wants to buy freehold of property for their leasehold house, then it cost them lots of money than expected. For example, if a property costs 10000 Euros at the beginning and later if leaseholder ask to buy the freehold of that property the developers ask for near about 40000 Euros and more. These are the some issues faced by the leasehold house owners now days.