The occurrence of ground rent scandal might have taken people by a surprise; however, there are still several advantages to it that you can experiment it. Read on to find out the benefits of purchasing freehold interest:What are freeholds/ground rents?
When you invest in a property and you purchase it on your name—the title on the property purchased by you is more likely to be on a leasehold or freehold basis. If the property is inclined to be a leasehold title then, it is more likely to be subjected to the requirements and basics, as covered by the lease. The lease would require the owner to pay a ground rent on an annual basis, and it might also require the leaseholder to oblige to certain restrictions. Nonetheless, there are few benefits of purchasing the freehold interest, which is stipulated as follows:Benefits of purchasing freehold interest:
While, there might be few cons to the freehold interest—you cannot deny the advantageous benefits that come with it. For instance, it means that as a leaseholder, you would be no longer obliged to pay the ground rent scandal on an annual basis, and it would also give you the liberty to extend your duration and make structural amendments to your property.
Once you have finalized your purchase of the freehold, the terms of the lease are still more likely to be applicable. However, as a freeholder, you are more likely to be granting permission to the freeholder according to your terms.
In addition, the initial lease was offered for a relatively short term of 99 years—purchasing the lease would save you from any sort of hassle that could occur during the transaction. You would be no longer required to worry about the factors, which would devalue the value of the property.