What are disadvantages of buying leasehold flat in UK and Australia, particularly UK where leasehold common, include ground rent, service charges, limited control and risk of being kicked out if lease breaches. Disadvantages include ground rent $200 to $500 per year in UK, increasing every 10 to 25 years, service charges $1,500 to $4,000 per year for maintenance, lift and insurance, which can rise 10% per year. Limited control, as freeholder owns building and can restrict pets, subletting and renovations, requiring permission costing $100 to $500. Lease length decreasing, with 99 year lease losing value after 80 years, costing $10K to $30K to extend, and mortgage difficult if lease under 70 years. Risk of forfeiture if you breach lease such as not paying ground rent, though rare and requires court order, with 6 months to remedy. In Australia, leasehold for flats is usually strata title not leasehold, but for ACT 99 year lease, disadvantages similar. Also no ownership of land, only building for lease term. So disadvantages of leasehold flat are ground rent $200 to $500 per year, high service charges $1,500 to $4,000, limited control over renovations and subletting, decreasing lease value and costly extension $10K to $30K, and risk of forfeiture if ground rent not paid, making freehold house better for control though leasehold cheaper upfront $200K versus $300K for freehold.
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