Lack of awareness among homebuyers
More than two in five (40%) of first-time buyers don’t know the difference between a leasehold and freehold property according to a new “Safe as Houses” homebuyer report from AA Legal Services.
The campaign is a public awareness programme geared to help homebuyers make informed house purchase decisions.
But the research has found that around 20% of UK adults did not know what a freehold mortgage was – and 49% thought a leasehold mortgage was something other than what is was. An accurate understanding of this property term was lowest among 18-24 year old homebuyers. With young homebuyers planning to spend an average of £159,653 on their first home, only 59% knew what the term freehold meant – and only 57% understood the term leasehold.