How Does a Leasehold Work?

Answer

Leasehold is ownership of a property over an extended period of time where the tenant pays an amount of money for the occupation. For leasehold to work the lessor and the lessee will have an agreement drawn up stating the period, amount to be paid, terms of when it should be paid and what will happen if it is not paid on time.
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Ask.com Answer for: how does a leasehold work
How Does a Leasehold Work?
When an individual occupies a property, his rights associated with the property could take one of many forms. One way that some properties are occupied is with a leasehold agreement. A leasehold agreement is an arrangement in which one party pays to... More »
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Source: www.ehow.com
A lease holds is the right to use a given peice of land for a set period usually 99 years. Once the term expires the property reverts to the original owner. However one can apply for a new lease hold.
When you purchase a leasehold property, you will buy the right to stay at your home for a certain period of time. The length varies and the freeholder owns the land on which your house is situated. The freeholder could be an individual, a private company and a housing association. He also has the right to collect the service charges and the ground rent.
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