What is a freehold ownership

There are two types of property ownership; leasehold and freehold. Freehold is essentially the property’s absolute owner. Freeholders rent the property to people and those people are called leaseholders. in other words, leaseholders rent a property, just like a landlord but from a freeholders. Freeholders usually don't sell they freehold they only sell the leasehold and its because of their profits. For the same reason, freeholders put some unreasonable demands on the leaseholders about their limitation and restrictions on how they can or can not use the property. Some other demands include the ground rent which has led to the ground rent scandal in some cases.

Advantages of leasing property
  • Providing home for those who have short term residential needs.
  • Steady income
  • Holding interests
  • Leasing property

    It is always beneficial for the owners to lease their properties if they are not using them. Some people who have multiple properties, lease all properties but one of them. They live in one of the houses that they own, usually the bigger one in the nice neighborhood, and lease the others. Sometimes home owner leases their own house and rents a smaller house for themselves. This way they can profit from the house they have leased because in this case, the house you lease to others has more values. And the rent you are paying to your smaller house is less that the rent your tenant has to pay you. For better understanding, you can think of it as your tenant paying your new smaller house rent. And because the amount is different and higher, you will gain profit. When you lease your property remember that if you don't want to cause a ground rent scandal, you need to make sure that your lessee has enough and proper information about the contract you are signing.