The Progressive Property Podcast Freehold VS Leasehold | What is The Difference And Which Should You Buy?
Kevin shares some of his YouTube content in this episode, to help you in your property journey and save you from making mistakes. Kevin explores the topic of freehold -vs- leasehold properties, whether you should invest in either or both and outlines the key differences you need to be aware of as a property investor.
KEY TAKEAWAYS
- When you buy a freehold it means you are buying the property and the land it is on.
- With a leasehold, you lease the land. This means as well as a mortgage to pay you also have service charges.
- With leasehold, you may be expected to pay for things that are external as well as internal, anything external is a joint responsibility between you and the leaseholder.
- Short leases, under 75 years, are hard to mortgage and start to devalue.
- You can get creative with leasehold properties and make money in ways you can’t do with freehold.
- You need to be the expert and work out your profit yourself, make sure you always include additional fees, estate agents might not include these.
BEST MOMENTS
“As long as that mortgage is paid, that freehold property is yours”
“Leasehold properties are typically, blocks of flats”
“When you buy a leasehold property make sure you know what you’re buying”
“The benefits far outweigh owning freehold property because it is always yours”
“Be very careful of leasehold property, where you do your numbers wrong!”
VALUABLE RESOURCES
MSOPI – Multiple Streams of Income:
https://www.progressiveproperty.co.uk
ABOUT THE HOST
Kevin McDonnell is a Speaker, Author, Mentor & Professional Property Investor. He is an expert when it comes to creative property investment strategies. His book No Money Down: Property Invest talks about how to control and cash flow other people’s property to create financial freedom.
CONTACT METHOD
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