First time buyers confused over housing fundamentals

06-Jun-2007

A significant number of first time buyers do not understand the meanings of the most simple property terminology, raising fears that a rush to buy is leading many to commit to unknown or unwanted purchases, new research has shown.

The study from AA Legal Services found that 40 per cent of respondents did not know the difference between a leasehold and a freehold property, with 18 to 24-year-old homebuyers especially ignorant on the subject.

Just 59 per cent of that age group understood the meaning of the term freehold, with only 57 per cent understanding what leasehold meant.

"Our research suggests that many homebuyers are so desperate to get onto the property ladder that they may be over-looking vitally important basic legal principles," AA Legal Services head James Molloy commented.

Home information packs – now set to be launched on August 1st – will include information on whether a property is freehold or leasehold, as well as a copy of the lease if the home falls into the latter category.

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