Freehold versus Leasehold

There can be little difference of opinion as to the advantages of building
on freehold land, both for possible future realisation and for present
purposes. At first sight, however, the comparatively small sum to be
paid yearly for a leasehold property seems preferable to the higher
price for its purchase. But when it is considered that the ground landlord
is apt, and naturally from his point of view, to insist on the erection
of substantial buildings of a certain value, one sees that the benefit
of a building lease is not as good as at first appeared.

For those who think of buying one or two old cottages to adapt into
one picturesque home, much expert advice as regards the construction,
as well as the validity of the title and deeds will be necessary. The
final cost usually comes to as much and often more than the price of
a new dwelling ; and if the old buildings are taken on an agreement,
it must always be remembered that, as the inevitable bill of dilapidations
has to be paid when the property goes back to the landowner, the place
is worth very little during the last twenty years or so of the lease.

Again, when one wants to make an addition to a house or garden which
have been taken on an agreement or lease, it is generally found that
spending money on other people's property is somewhat disappointing
work.