We’ve now got as far as F in our A to Z of Property Investing and F is for Freehold. As a property investor, it’s always advisable to double check what type of lease the property you have has before you buy, so that you don’t experience any unwanted surprises further down the line.

When you buy a property with a freehold lease, you gain complete ownership of the land and all of the buildings that are on it. Subject to laws and planning regulations, you have the right to do what you want with the property. Most houses in the UK tend to have freehold leases, but many flats and apartments have leaseholds.

In contrast to freehold, a leasehold property is leased to the owners for a set amount of time and usually comes with particular terms and conditions that need to be met in relation to the property, such as paying an annual maintenance fee.

When you’re researching properties to buy and looking at the particulars of certain houses or flats, then it’s essential to get into the habit of checking to make sure whether it is freehold or leasehold. Although there’s nothing wrong with owning a leasehold property and many people successfully do so, some investors prefer to stick with stick with an area they’re familiar with and always opt for freehold properties above leasehold.

As with any property purchase, as long as you do your research carefully, read the small print and are always clear about exactly what you’re buying, then you’ll put yourself in the best position for buying.

Catch up on the other instalments in our A to Z of Property Investing series:

A is for Appreciation
B is for Buy-to-Let
C is for Contracts
D is for Deals
E is for Experience