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What are the advantages and disadvantages of buying a freehold compared to a lease?

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What are the advantages and disadvantages of buying a freehold compared to a lease?

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A. Buying a freehold is often seen as making an investment in property. You can benefit from the rise in the value of the property – but you are also at risk if its value falls and you want to sell. In cashflow terms, buying a freehold has a high initial cost. Over the long term, however, owning the freehold can be more cost-effective than leasing premises. Owning the freehold can also give you greater flexibility in how you adapt and use the premises (see 2). However, if you expect to want to relocate or acquire different premises, a flexible lease may be a better solution.

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