By Emma Lunn

Buying a leasehold property (usually a flat) means you don't have the same freedom as someone who buys a freehold property and owns it outright. A leasehold gives you the right to live in the property for a set amount of time rather than owning the land the property sits on.

You only own the space for the number of years on the lease and there can often be some odd restrictions on what you can do in your own home. So, before going ahead with the purchase of a leasehold flat or apartment there are number of things you should know.

1. The freeholder

Leasehold flats have a freeholder or landlord. The freeholder owns the structure and common parts of the building and the land it stands on and is responsible for its maintenance. The landlord might be an individual, company, local authority or housing association. So find out who they are before you agree to anything.

2. Managing agents

The freeholder might manage the building themselves or they might appoint a managing agent to manage and maintain the building on behalf of the landlord. The managing agent will charge a fee that will be added on to the service charge. Some managing agents charge way over the odds and/or provide a sub-standard service so check whether the agents have ever been taking to a Leasehold Valuation Tribunal over their fees or service standards.

3. Service charges

Service charges cover maintenance of the structure of the building and its common parts as well as buildings insurance. The charges are billed on behalf of the freeholder by the managing agents to the leaseholders. Some service charges can be very high and make a significant difference to the affordability of the flat. Blocks of flats with lifts or swimming pools will have higher service charges than more basic blocks. So make sure you find out what you'll be paying before signing anything.

4. Lease length

When a property is built the lease is normally set at 99 or 999 years and decreases each year. When the lease falls below 70 years it gets more difficult to get a mortgage. You can pay for a lease extension under the 1993 Leasehold Reform Act but it's expensive and a long, complicated process and the longer you leave it the more costly it gets.

The Leasehold Advisory Service has a calculator to give you an idea about how much it is likely to cost to extend your lease. However, it can't do calculations for leases with fewer than 60 years remaining.

5. Ground rent

This is a notional sum leaseholders (ie you) have to pay the freeholder each year, normally £100 or £200. If the lease has been extended under the 1993 Act, you no longer have to pay ground rent.

6. Major works

Under the terms of a lease major works will normally be scheduled every few years. These will normally be external (i.e. fixing the roof and guttering) or internal (decorating the internal communal areas). You should know when works are scheduled and how much they are likely to cost.

7. Reserve funds

Some leases enable the landlord to collect money in advance to create a reserve or sinking fund. This is to ensure there is enough money to pay for future scheduled major works. An advantage of this is that the costs of major works will be spread out but, on the downside, contributions to the reserve fund are not reimbursed when a flat is sold.

8. Terms

A lease is basically a list of terms both the freeholder and leaseholder must abide by. Most are for the safety and security of leaseholders but check whether any terms in the lease will matter to you. For example, some ban pets while others will stop you storing a bike or hanging your washing on a balcony.

9. Subletting

Some leases contain a term that bans subletting. This means you wouldn't be able to let your flat out to tenants in the future so think about whether this might be a problem. Others allow subletting but you'll need to get written permission from the freeholder and pay a fee for this.

10. Outside space

The lease will also confirm whether you have a designated car parking space and which one it is, as well as whether any outside space at the property belongs to you or is communal space.