Owning a leasehold property exposes you to several critical downsides, including unpredictable ground rent increases during scheduled review periods, a constant depreciation of market value as the lease countdown ticks closer to zero, and severe difficulties when trying to secure mortgage financing from commercial lenders. Furthermore, leaseholders face strict covenants limiting building renovations or structural modifications, and they lack the long-term security and equity accumulation inherent in traditional freehold real estate.
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