PROPERTY VALUATION

Property Valuation Assignment

Property Valuation Assignment

Freehold Property

If you purchase a freehold property, you will own the home, the land it is built on, and you will have the right to live there for as long as you please. You can make moderations to the property within restrictions of the law and planning restrictions. You may need permission to make structural changes, particularly with listed buildings (old buildings). Most houses are sold freehold. Flats can be sold freehold, but very rarely, they are usually leasehold. However, flats are increasingly becoming Freehold because of a legistration that is making it easier for leaseholders to buy the freehold.

Flying Freehold

You may have heard of ¡°flying freehold¡±, but never really understood the difference between it and a regular freehold. Its actually just as common as a regular freehold, and is not considered abnormal. However, flying freeholds are a bit of a grey area in the eyes of the law, consequently most lenders will probably not support you financially to buy a property of that type.

A Flying Freehold is the part of the freehold property which overhangs land which does not form part of that property freehold. The flying part doesnt need to be up in the air, it can be over a part of someone elses freehold, or over a common part, like a driveway.

Here is an example of how a flying freehold may occur: A semi detached house was separated into two freeholds. However, the dividing line does not go straight down the middle, and one corner of the bathroom is above a part of the lounge next door. Another example where a flying freehold may occur is if an extending balcony is above someone elses freehold land.

Leasehold Property

If you buy a leasehold property you are actually buying the rights to live in a property for a set period of time. You wont actually own the property, or the grounds it is situated on. Most flats are leasehold; with the lease, it means you are obligated to pay ground rent to the freeholder. The ground rent will cover the costs for communal maintenance repairs. The lease should stipulate how the service charge is worked out, and how it is divided between the other leaseholders. Its important to calculate all these costs before committing to a leasehold property, as you may not have budgeted for the additional costs.

Once the set period in the lease expires, the ownership of the property is given back to the land owner. Most leases are roughly 99 years; however, you can get an extension. If anyone is buying a leasehold property, it is important to find out how long the lease is for as it will affect the value of the property.

Why do people get leasehold properties? Well, because most flats are leasehold, and it means everyone living with in the same building has to split maintenance costs in respect of the common parts of the building and the communal areas. It is possible to extend the leasehold to up ...