Tag Archive: Leasehold
Do You Know the Difference Between Freehold and Leasehold Purchases?
Below, John Parkinson, Thames Valley Business Advisors member and a leading commercial property advisor, construction and development expert with four decades of experience, explains about freehold and leasehold purchases.
Leasehold is not normally the preferable option for businesses wishing to purchase new properties, but this option is available. It is essential that leasehold and freehold are fully understood before any deal is done. A commercial property advisor is a key ally during the process for peace of mind and efficiency. Seeking advice when buying any commercial property is also recommended.
None of the following information applies to leasing.
Freehold and leasehold purchases
A freehold purchase entails buying the land, buildings and everything else on site. Ownership is in perpetuity and can belong to the business or the business owners depending on the set up.
In contrast, a leasehold is the purchase of the right to use the property and buildings …