If you’re diving into buy-to-let, you’ve probably come across the freehold versus leasehold debate. In most cases, freehold tends to come out on top, and there’s a good reason for that.
As a landlord, owning the freehold means you’ve got full control of both the property and the land. No lease terms to worry about, no ground rent surprises, and no service charges quietly chipping away at your rental income.
It also makes things smoother on the mortgage front, since lenders often prefer the simplicity and lower risk of a freehold deal.
That said, leasehold isn’t always a bad move.
Some of the best rental spots, especially city centre apartments and popular developments, are leasehold by default. These properties can bring in higher rents and attract consistent tenants, especially young professionals.
As long as the lease is long enough, many lenders are still keen, and modern leasehold flats often come with less upkeep. You won’t be chasing roof repairs or garden issues since the management company usually handles all that.
So while freehold offers more freedom and fewer hidden costs, leasehold properties in the right location can still be a smart investment. It just comes down to doing the maths, checking the lease carefully, and making sure the numbers work with your mortgage and expected rental income.
Austyn Johnson
austyn@hdconsultants.net
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