Freehold or leasehold?
A freehold property is one where you own the land on which it sits – most houses are freehold. A leasehold property is one where you do not own the land on which it sits, and instead pay ground rent to the person that does, and you only own the property for the duration of the lease. Therefore you should only buy a property with a long lease. There is no financial gain in investing in a property with a short lease, when you will have to hand the property back when it expires. Bear in mind how long you will want to live in the property – and whether you would like to hand it down to family. Anything under 50 years is risky – in terms of resale and owing the property long enough to see the lease run out. Finally, if the lease is too short you may have difficulty obtaining a mortgage.
Sometimes if you purchase a leasehold, you may be given the option to buy a share of the freehold. This is usually a good idea because you will take on a shared responsibility of running the property and its grounds, and will not have to pay ground rent. It will also benefit you when you come to selling.
Finally, remember that if you own a leasehold property you will need to obtain permission not only from your Local Planning Office, but also from the freeholder if you wish to undertake any renovations to the property.