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Leasehold - A leasehold is where the property is owned for a limited time and then ownership passes back to the freeholder. For example a property with a 99 year lease means that the property is owned for 99 years. Generally freeholds apply to houses and leaseholds apply to flats. The shorter the lease the less the value of the property and in some cases for example where a lease has less than 50 years to run many lenders will not offer a mortgage on the property.

It is therefore most important that you find out the length of a lease when purchasing a leasehold property. If you find a property that has a shorter lease than is desired, it may be possible to extend the term of the lease for an additional payment to the freeholder. Your solicitor/conveyancor will deal with the legal work involved.

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