When a leasehold comes to its natural end, the property reverts to the freeholder, the owner of the land on which the property is built. This effectively means the leaseholder no longer has the right to occupy the property. For example, if an individual purchases a flat with a 99-year lease, at the end of that 99-year period, ownership of the flat transfers back to the freeholder unless action is taken to extend the lease.
Understanding the implications of the end of a lease is crucial for leaseholders, as it directly impacts their security of tenure and potential investment. Historically, leasehold arrangements offered a means of owning property affordably, particularly apartments. However, diminishing lease lengths can significantly devalue the property and complicate sales, necessitating proactive management and, if possible, lease extension negotiations.
