The costs are involved in leasehold owning.

Before you fully own leasehold, there are various very important costs you need know about just to be on a safer side because without attending to these costs the transaction cannot be complete. These costs include;

Ground rent

Ground rent is the amount you pay to the freeholder for the land that your lease property is sitting on. This should be elaborated in details in the lease agreement about the amount and the frequency of paying. The solicitor you are using is responsible for checking through the details just to determine if the ground rent is either fixed or is escalating, for the reason that if you never knew that your ground rent was escalating just to realize when it has accumulated beyond limit it will definitely result into a leasehold scandal .

Service charges

This is the charge paid by the leaseholder to the landlord for services that will be offered like maintenance and repairs. All these payments are made by the leaseholder alone and it varies in each and every year. Your solicitor must check the terms to confirm if the amount charged are worth or if they are exaggerated or if the service charge could be affected in future by bigger plans.

Insurance

The insurance fund may be charged for the building exterior insurance, however you will need to have your own personal insurance too.

Sinking fund

This amount is charged by the landlord in advance of any planned work to ensure there is enough money when the implementation starts.

Conclusion

If you are intending to buy a leasehold property then you really need to put in mind these charges because failure to do that you may think that you are being overcharged at some point and definitely a leasehold scandal will arise, so keep informed.