Even though people have bad opinion about paying leasehold ground rent and leasehold property, it has its advantages. One of the reasons why people started having bad opinion about this kind of property is recent leasehold scandal, but if you are careful and if you don’t trust everyone, leasehold property can be useful for you
One of the most common reasons why people decide to lease property is because they don’t have enough money to buy freehold houses or grounds. Other reason is because they just don’t want to pay too much money, so they decide this is good option for them. Leasehold properties are way cheaper than freehold properties, and also leasehold ground rent is very low, almost equal to zero.
You can always buy property
Good thing about leasing property is that you can always decide to buy it and be freeholder of it. Also there is another option of sharing ownership, so you can maybe find a way to make some profit from that.
People often complain about how they can’t do anything without permission of landlord or freeholder, and it is indeed true, but there is something good about it. You mostly have less responsibility when it comes to maintaining and repairing things.
It’s good for people who need short-term leases
It is good when you need some short-time accommodation or something like that. For example when you went abroad to study or to work for specific amount of time, but you need some place to live at it.
Lower tax for both sides
Instead of paying full taxes, both sides – leaseholder and freeholder are going to pay less tax, or they will have tax reductions.