Southampton landlords - should you buy leasehold properties?

Some landlords seek to avoid flats, or other leasehold properties. There are valid reasons for this, namely:

• There’s a monthly service charge to factor in, which will negatively affect your return.

• There’s a lease that’s depreciating, and if you need to renew it, there’s an associated cost.

However, some Landlords make good money out of leasehold units. That’s because they are careful about what they buy and factor in the associated costs. They would argue:

• Leasehold properties usually cost less than their freehold equivalents to start off with.

• If the property has a long lease, this is unlikely to ‘bite’ you during your period of ownership.

• Leasehold properties tend to be more modern and as such in better internal order.

• Leasehold properties rent just as well as freehold ones. Many tenants like the ease of renting a flat.