RENTAL properties are not common across the UK – but you’ll still want to know what they are if you buy a property.
Here’s everything you need to know about them and how they differ from free property.
What is a rental agreement?
Owning a lease on a property means you have the right to live in the property for a certain period of time.
In the UK, the standard period is 125 years, but it can be more or less.
Unless you renew it, title to the property returns to the landlord when it expires, also known as a freehold owner.
You may also need to get permission from the person who owns the entire property before making changes like adding an extension or owning a pet.
Around 8% of houses are rental properties in the UK, compared with the majority of apartments.
In other words, they’re common and can’t always be avoided, but it’s important to know what you’re getting into.
What does a lease mean when buying a property?
Leases make sense when living in a row of apartments so that everyone living in the block can own their own apartment as well as part of the stairs or common areas.
It also means that any maintenance to the common area including the exterior walls and roof is the responsibility of the owners free of charge, so you won’t have to pay for any repairs. treatment in those areas.
But until recently, homes could be built and sold with this type of arrangement, which has led to some unfair treatment of tenants.
What is a freehold?
Most homes are sold as full title because it is the simplest way to own a home.
Full ownership of a home means that you own the house outright.
As a freelance owner, you own the land on which the property is built, free ownership also allows you to live in a property indefinitely.
This even includes the space above the house about 500 feet high as well as the ground below the house.
Maintenance of the property is entirely your responsibility, so you will have to pay for any and all repairs.
Why are leases controversial?
One of the main problems with leases is a fee called space rent.
Ground rent is a fee that a lessee pays to a freelance tenant as part of a contract between the two parties.
In the past, space rent could be a small fee such as £1 a year.
But over the past 20 years property developers have started charging space rents of £200 a year or more.
Developers also began to include provisions in the lease agreement to ensure that the rent of the premises would double every ten years.
If you find a home you want to buy and it happens to be a lease, you should still consider buying it.
Just make sure you check with an attorney that the rental agreement doesn’t include extortionate rent provisions or the right for the landlord to charge you blackmail when trying to expand your home or own a pet. .
There are even some benefits to having a rental agreement.
- Certain repairs are taken care of by the owners free of charge.
- If you are having a problem like noisy neighbors then your toll free owner has to take the matter to the police directly.
- The building’s insurance is sorted by owner free of charge.