There are few milestones in our lives more exciting than that of purchasing and moving into a new home. After months, even years of searching, no feeling quite beats the moment you’re holding the keys to your new home in the palm of your hand.

But before you decide to move, there’s lots you must first weigh up when beginning your search to find the perfect property. From mortgage rates, to stamp duty, and property chains – it can sometimes feel like a minefield.

Yet, everything else aside, one of the first questions you need to ask yourself is “what type of property do I wish to purchase?”

In this article, we explore the difference between buying a house and buying a flat – and the benefits of each.

Buying a House (Freehold)

Almost all houses are what is known as freehold properties. Freehold is where you have complete ownership of a property as well as the land that it’s situated on. You are solely in charge of the building, therefore any changes you wish to make to your home’s interior or exterior is up to you.

The main pros of freeholds:

• You don’t have to pay extra for ground rent
• You own the property and land outright, therefore you don’t need permission to make changes to it
• You can have pets
• You can sub-let your property if you wish

Buying a Flat (Leasehold)

The majority of flats on the market are leasehold, due to the fact it’s not one single property, but a block of properties together on the same piece of land. A leaseholder is someone who owns the property, but not the land it is situated on. This means there are limitations to the changes you can make without first seeking the freeholder’s permission.

The pros of leasehold flats are:

• They are typically cheaper than houses
• You aren’t responsible for building maintenance
• There are alternative finance options available that allow you to secure the property for less than market mortgage rates

What to do when stuck in a chain

If you’re stuck within a house chain it can be a rollercoaster of a ride right up until the moment you get the keys to move into your new home. If you sell your current home but are still waiting for the occupants of your soon-to-be home to exit the chain, you may need to consider renting somewhere temporarily. If this is the case be sure to cover your bases by taking out the relevant renters insurance so that you and your possessions are protected against unforeseen circumstances.