Housing

[bigmamma]

Could someone please explain these terms to me , leasehold , freehold, absolute title ? :-) xx

[redcrx]

hi big mamma!

I havnt a clue about absolute title

leasehold - in very basic ternms you own the right to reside there for a set term Most leaseholds are initially for 100+ years and lenders dont like to mortgage anything with less than 80 years to run. This is usually for flats because no-one can actually own the land that a block of flats is on apart form the landlord. A nominal rent called ground rent is payable to the landlord.

Freehold means you own the property and the land.

[bigmamma]

Thankyou redcrx sweetie , I understand that now :-) xxx

[seatrout]

If I remember correctly absolute title is the highest interest you can have in land eg if you occupy land without owning it you can apply for whats called possesary title but this would be over ridden by anyone with a better title i.e absolute title. So its the complete ownership of freehold land without any other competing interests - hope this makes sense for you

[Pragmatist]

Leasehold is very prolific in England - not so much in Scotland, we have bought most of them out!!! plus Fues. In the most part Houses will be freehold ( and quite honestly you don't want to touch one if not!!) and you will find that groups of flats are leased as they have common facilities (i.e. entrances roofs, pumbing etc>) and invariably have management companies dealing with those facilities - yes you are tied to the fact that someone else owns the ground and you are 'renting' the property on top of it - so as the lease gets shorter - unless you can negotiate a freehold price the property you own has less and less value as time goes on , as to the period as to when a loan company would stop lending - I do think it is debatable, certainly commercial premises still have a value even with short leases. I in all my years in housing, have never heard the term absolute title - so have to think it may be a legal term rather than a housing term. As to the previous answer - I have to bring my memory to the front and think most leases started at 99 years????!!! but I am more than happy to be corrected!

[bigmamma]

Thankyou seatrout and Pragmatist for your answers . I couldn't get my head around my step-fathers legal letters and neither can he . You have all been of help and I thank you again :-)

[redcrx]

my flat has 127 years to run on its lease. It was bought with 132 years.

My estate agent who I have it on the market with told me that 80 years is really the limit that a mortgage company would pay out on.