Tips for Buying a Leasehold Property
If you have money to invest, buying a leasehold property can be a great and safe idea for the future.
Before we start talking about the advice on buying a leasehold property it is necessary to define what exactly it is.
What is a leasehold property?
There is no doubt when differentiating between a house owned and a house rented, but not everyone knows what it means to have a leasehold property.
It is a type of lease that usually has a minimum duration of 40 years. They are contracts that last a long time and, unlike traditional rentals, have the characteristic that these leases can be sold without the permission of the owner of the property, so the sale of this type of contract can be very beneficial.
Basic tips for buying a leasehold property
- Before making the purchase, it is interesting to know if the owner of the property would be willing to extend the lease, since the longer the contract, the more valuable it is.
- You should make sure that the restrictions that apply in the contract are clear. For example, you may wish to have a pet in the home, but these are not allowed.
- If you buy a building with the intention of later renting it to other people, bear in mind that this is a complex process. In these cases it is essential to have the advice of a professional during the purchase and while the different rental contracts are being drawn up.
- If you want to buy the property to become the owner, before making the purchase you must hire an appraiser and a lawyer. It is very important in these cases that an expert assesses the real price of the home and that all the legal aspects involved are taken into account, which depending on the case in which we find ourselves can be very complex.