Three checks before you compare a freehold and a leasehold house

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Three checks before you compare a freehold and a leasehold house

A short checklist from the transaction records, 2021 Q4 to 2026 Q3

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Three checks before you compare a freehold and a leasehold houseA short checklist from the transaction records, 2021 Q4 to 2026 Q31. Lease start. Find the start year of. the leasehold house1. Lease startFind the start year ofthe leasehold house2. Like with like. Compare houses of. similar age, same area2. Like with likeCompare houses ofsimilar age, same area3. Premium. Compare it with the. recent range 22% to 62%3. PremiumCompare it with therecent range 22% to 62%Decide. A high premium alone. is no reason to avoid. freeholdDecideA high premium aloneis no reason to avoidfreeholdNo tenure index exists after 2013 Q1, so the data cannot say if freehold held its value better in 2013 to 2017.

Source: PropInsights checklist; the 22% to 62% range is the premium from 2021 Q4 to 2026 Q3.

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Three checks before you compare a freehold and a leasehold house
StepDetailLeads to
1. Lease startFind the start year of. the leasehold house2. Like with like
2. Like with likeCompare houses of. similar age, same area3. Premium
3. PremiumCompare it with the. recent range 22% to 62%Decide
DecideA high premium alone. is no reason to avoid. freehold
Topic
Landed property: freehold or leasehold?
Segment
Landed homes
Chart type
Flowchart
Access
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