There is no specific date where the term freehold was first coined. In the Domesday Book of 1089, it is defined as the permanent and absolute tenure of land or property with freedom to dispose of it at will. When you have a freehold, it relates to the outright ownership of both the property and the ground it stands on, for an unlimited amount of time. A freehold property is usually a house; however, it is possible to purchase a flat in a communal building and with a share of the freehold.
Tenure
The tenure of a freeholder gives the individual the benefit of extensive rights, which allows them to do many things with the property. Subject to planning permission, a freeholder can renovate or modify the property as they wish. You could also change the use of the property for residential or commercial purposes and the property can remain in your family for generations.
Owner’s responsibility
The owner of a freehold also has certain responsibilities relating solely to the property as noted below:
- Repairs and maintenance: As a freeholder, you are wholly responsible for the internal and external maintenance of the property and any of the costs involved.
- Insurance: A freeholder must also take the necessary steps to ensure there is building insurance to cover rebuilding costs should there be any damage to the building.
- Mortgage: Where the building is financed, the freeholder is required to maintain regular payments relating to mortgage and associated costs. By not complying with this, one could risk repossession of the building/property.
- Property Tax: A freeholder is also responsible for all payments of property taxes such as council tax and stamp duty.
- Planning Permission: Where alterations or major additions to the property/building are concerned, permission must be obtained from local authorities for authorization.