What Is Freehold?
Answer: In the United Kingdom, freehold is a form of property ownership in which the owner has outright title to the property and is responsible for all liabilities attached to it. Contrast this with leasehold, where the property is owned by someone else but the leaseholder has exclusive use of it for a set period of time.
When it comes to housing, freehold properties are more desirable than leasehold ones because they offer greater security and control over one’s home. For these reasons, freeholds are often more expensive than leaseholds.
However in retirement housing it is very uncommon to find freehold properties as they are very much an urban dwelling property, the reason being is that a freehold property has to be for life and cannot be passed on to another owner.
In retirement housing it is more common to have a simple long term lease where the owners takes it over for a set period of time which can then pass onto another leaseholder.
Let us look at the difference between a Freehold and a Leasehold Retirement Property:
Freehold is property ownership where the owner has outright title to the property and is responsible for all liabilities attached to it, for life.
Leasehold is a type of long-term tenancy agreement, similar to a rental agreement, where the tenant rents the property from a landlord for a specific period of time.
Freehold is common in UK hotels and resorts, but very rare in retirement housing as it cannot be passed on to another owner.