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    Chain free property implicitly means freehold?

    I was looking up what chain free means via google and I found that it basically means: "Buying a property chain-free means there is only one buyer and one seller involved so all the negotiations are much simpler than in a long chain"

    I was wondering, since it is said that only the buyer and seller is involved in the sale - does this mean that the property would be freehold?

    12 Comments

    No, freehold relates to the fact that the ground that the property sits on is not held by another party.

    nope chains and freehold or lease hold is completely separate things. no chain means there is no onward chain so the house you are buying they could be going abroad/deceased/going into rented etc. you wouldneed to see the paperwork or ask the vendor if it is freehold.

    What they said.

    Apparently a lot of property in Sheffield is leasehold due to the mines. Something i learned over Christmas.

    If you have never bought a house before you may not be aware what a pain a "chain" in house moving is.

    Obviously most people selling a house are also buying one, but the house THEY are buying may also have people who are also buying one, and so on and so on.

    This is the chain.

    The problem is that for a chain of house moves to work everybody needs to buy / sell on the same day (the seller needs their money to buy the house they are buying and so on). And getting everyone in a chain to agree to buy / sell on the same day can be a big problem.

    It becomes a bigger problem if one person in the chain "drops out" for any reason the whole chain can collapse and it may take a while to get the chain linked up again.

    Hence buying a house with "no chain" is a "good thing".

    guilbert53;7381006

    If you have never bought a house before you may not be aware what a pain … If you have never bought a house before you may not be aware what a pain a "chain" in house moving is.Obviously most people selling a house are also buying one, but the house THEY are buying may also have people who are also buying one, and so on and so on. This is the chain.The problem is that for a chain of house moves to work everybody needs to buy / sell on the same day (the seller needs their money to buy the house they are buying and so on). And getting everyone in a chain to agree to buy / sell on the same day can be a big problem.It becomes a bigger problem if one person in the chain "drops out" for any reason the whole chain can collapse and it may take a while to get the chain linked up again.Hence buying a house with "no chain" is a "good thing".



    Spot on - couldn't of put it better myself ! :thumbsup:

    Supermod

    No. Freehold relates to the title of the property and how the property is transferred to you.

    There are different types of title which you can acquire but the two that most come across will be Freehold or Leasehold (good or absolute).

    Freehold means that you own the property and you can do with it (save for listed building etc, planning regs) what you wish.

    Leasehold means that you own the lease of the freehold. This is common in flats. The individual flats will all have a leasehold title and the whole block will have a freehold title. The freeholder is usually the landlord of the whole block.

    With leasehold you pay service charges and ground rent and the property is subject to a number of years. It means that it is "leased" to you for an amount of years. Normally mortgage lenders will not lend on leasehold if it has less than 50 years.

    I know this wasnt your initial question but thought it might be useful to some.

    Example of a chain:

    Seller - Buyer = Chain free

    Seller - Buyer - Seller = Chain (...and so on)

    magicjay1986;7381266

    No. Freehold relates to the title of the property and how the property is … No. Freehold relates to the title of the property and how the property is transferred to you. There are different types of title which you can acquire but the two that most come across will be Freehold or Leasehold (good or absolute). Freehold means that you own the property and you can do with it (save for listed building etc, planning regs) what you wish. Leasehold means that you own the lease of the freehold. This is common in flats. The individual flats will all have a leasehold title and the whole block will have a freehold title. The freeholder is usually the landlord of the whole block. With leasehold you pay service charges and ground rent and the property is subject to a number of years. It means that it is "leased" to you for an amount of years. Normally mortgage lenders will not lend on leasehold if it has less than 50 years. I know this wasnt your initial question but thought it might be useful to some. Example of a chain:Seller - Buyer = Chain freeSeller - Buyer - Seller = Chain (...and so on)


    +1.
    Just to make it abundantly clear:
    Freehold = in perpetuity, ie you own it, it's yours forever.
    Leasehold = yours for the length of the lease. Then it goes back to the freeholder.
    You can still have service charges in freehold flats (just not ground rent) - and freeholds can be very pose many difficulties for flats. E.g. Flying freehold.

    Supermod

    seancampbell;7381363

    +1.Just to make it abundantly clear:Freehold = in perpetuity, ie you own … +1.Just to make it abundantly clear:Freehold = in perpetuity, ie you own it, it's yours forever.Leasehold = yours for the length of the lease. Then it goes back to the freeholder.You can still have service charges in freehold flats (just not ground rent) - and freeholds can be very pose many difficulties for flats. E.g. Flying freehold.



    Which about 90% of lenders will NOT lend on....

    Indeed, for good reason.

    Original Poster

    Thanks for the fast and clear explanation guys. I think some rep is in order

    Hi I'm looking to purchase a house but I've been told there is no freehold on the house I'm looking at . . what dose this mean ?

    Banned

    eddy1234

    Hi I'm looking to purchase a house but I've been told there is no … Hi I'm looking to purchase a house but I've been told there is no freehold on the house I'm looking at . . what dose this mean ?



    It means you own the house, but not the land it stands on. You will need to find out how long the lease is, and who the freeholder is. You will also need to find out extra charges that will be involved. Those charges will be a nominal amount each year for ground rent, but can also include a monthly service charge. Most leasehold property are flats but not all.

    The length of the leasehold is key here. 80 years in length and below the value of the property decreases. Some property have 999 year lease, others can have 99
    Edited by: "Lyrrad" 20th Oct 2015
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