The leasehold timebomb is a phrase we use to highlight the problem of a decreasing unexpired term on leases for residential properties, which were granted by the Freeholder when the property was built. In other words if your property is leasehold, the time left on your lease will be decreasing every day, and the fuse on your timebomb is getting shorter and shorter.
In order to establish if this issue affects you, one very simple question to ask, is:
Do you pay Ground Rent on your property?
If the answer is “yes” it means that you are a Leaseholder, and there is a Freeholder who granted a lease when your property was built. As the time remaining on your lease will be constantly decreasing, you will need to deal with this issue before it becomes a major problem. Please take a look around our website for further information and advice.