Research by Warwick Estates has revealed just what aspects of a leasehold property purchase the nation’s homebuyers find the most potentially off-putting.
Warwick Estates asked 1,000 recent UK homebuyers to have purchased in the last six months – Which factors of leasehold homeownership would most deter them from buying a leasehold property?
It seems as though future uncertainties ranked top, with homebuyers most deterred by being at the mercy of the freeholder, while the second biggest deterrent was the service charges and ground rent associated with a leasehold home.
Often the biggest red flag when buying is the length of the lease and homebuyers ranked a short lease as their next biggest deterrent.
Future increases in service charges and ground rent were also a worry, along with not being able to bring a pet into your home.
Not being able to sublet was the least biggest worry, with higher conveyancing fees and the inability to potentially run a business from home also less of a worry.
Of course, while leaseholds may have their downsides, they also carry a number of pros for homebuyers.
In a market where house prices have hit an all time high, leasehold homes provide a far more affordable foot on the ladder. The freeholder is also normally responsible for any maintenance within the communal areas, as well as the exterior building and surrounding grounds.
They also arrange building insurance meaning you’re covered without having to shell out this additional cost.
In major cities, leasehold homes also offer a far greater lifestyle offering, with additional features such as concierge, on-site amenities and communal greenspaces bringing greater appeal to the modern-day homebuyer.