Thanks for your question.
There are differences between leasehold and freehold.
1. The lease will contain covenants, I.e obligations with which you must comply. These range from repair, payment of service charges, regulations as to use, whether you need consent to alter the premises.
2. It is a depreciating asset. As the term expires it effects value. Do not allow the term to drop to 80 years or below, it becomes considerably more expensive to extend the term. If the term drops to around 70-75 years or below it is effectively unmortgageable, meaning a buyer's lender will not agree to finance the purchase.
A tenant becomes a qualifying tenant after 2 years ownership and can then rely on the statutory process to extend the lease, generally an additional 90 years but subject to payment of a premium.
I hope this helps.
Any questions or queries? Happy to assist further.
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