All residential units at London City Island—much like virtually all flats in London—are leasehold. This means buyers acquire the right to occupy the property for a set period, rather than owning the land itself. The freeholder retains ownership of the building and grounds, which continues until the lease expires.
You may hold a fixed-term lease—typically ranging from 99 to 999 years—but as the years shorten, the property’s value may decline unless extended.
Leaseholders are typically responsible for paying ground rent, service charges, and contributing to building maintenance.
True freehold ownership applies primarily to houses, not flats. It grants full ownership of land and structure.
Share of Freehold allows flat owners to jointly own the freehold via a management company—but this arrangement still operates under a lease framework.
Here’s what leasehold ownership typically involves:
| Consideration | What Leasehold Implies |
|---|---|
| Lease Term | Can range up to 999 years; shorter leases can reduce value and complicate resale. |
| Costs & Fees | Includes ground rent and service charges, which can increase over time—even in freehold structures. |
| Legal Risk | Leaseholders must adhere to lease terms and may face high costs or restrictions for extensions or alterations. Recent reforms aim to reduce this burden. |
The Leasehold and Freehold Reform Act 2024, expected to take effect from late 2025, introduces major improvements:
Makes lease extensions more affordable and abolishes "marriage value" on leases under 80 years.
Simplifies enfranchisement processes and pushes for commonhold as a fairer, long-term tenure structure.
Scrutinise lease terms, length, ground rent, and ongoing service costs.
Stay informed on legal reforms, as they can significantly change long-term value and flexibility.
Tenure-Savvy Valuation—We assess how lease terms affect long-term value.
Compliance Expertise—We guide you through lease extension options and emerging legal rights.
Robust Lettings & Investment Support—Help rent or manage, keeping income and compliance aligned.
Ready to navigate leasehold complexities and secure the best foundation for your London City Island investment? Visit FraserBond.com to explore tailored support and letting strategies.
