As a freeholder, you have ultimate authority over the property and the land it sits on, subject only to planning regulations. The Right to Manage and Enfranchisement.
Understanding Your Right to Manage as a Leaseholder
This document specifies the number of years remaining on the lease, which can range from a few decades to 999 years, and outlines the financial and legal obligations of both parties. The initial term is often 125 years or more for new developments, but as time elapses, the value of the lease depreciates, which can lead to complications if the term drops below 80 years.
Understanding the Mechanics of a Lease At its core, a lease is a legal contract between the leaseholder and the freeholder, or landlord, of the building. You are responsible for all maintenance and repairs, but you also retain the full equity and appreciation of the asset.
Understanding Your Right to Manage as a Leaseholder
When a lease drops below 80 years, the premium required to extend it increases significantly due to the "marriage value"—the additional value created by a longer lease—which must be shared between the leaseholder and the freeholder. Service charges, on the other hand, cover the cost of maintaining the common areas of the building, such as the roof, hallways, elevators, and exterior walls.
More About What is leasehold ownership
Looking at What is leasehold ownership from another angle can help expand the discussion and give readers a second clear paragraph under the same section.
More perspective on What is leasehold ownership can make the topic easier to follow by connecting earlier points with a few simple takeaways.
