Owning a property on leasehold land carries significant structural and financial drawbacks. The most prominent disadvantage is the requirement to pay ongoing ground rent to the landowner, which is subject to periodic reviews and can skyrocket if local land values surge. Additionally, leasehold properties suffer from declining market values as the remaining lease term shortens, major commercial banks enforce strict mortgage lending restrictions or refuse financing entirely, and the eventual expiration of the lease threatens total loss of asset equity.
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