Choosing freehold instead of leasehold when buying property for universities can lead to some tricky issues. Here’s a simple breakdown:
Higher Costs: Freehold properties usually cost more upfront. This can put a strain on the university’s budget.
Maintenance Work: When universities own freehold properties, they have to take care of all the maintenance. This means they are fully responsible for keeping the property in good shape and following all the rules. This can be a lot for university staff to handle.
Less Flexibility: Freehold agreements are not as flexible as leasehold ones. Leasehold agreements can be changed or ended if needed, but freehold ties the university down more, making future planning harder.
Long-Term Commitment: Owning a freehold property can keep universities stuck in agreements that might not be the best in the long run.
Solutions: To handle these problems, universities should plan their finances carefully, get legal advice, and do thorough research. This way, they can make better choices when it comes to buying property.
Choosing freehold instead of leasehold when buying property for universities can lead to some tricky issues. Here’s a simple breakdown:
Higher Costs: Freehold properties usually cost more upfront. This can put a strain on the university’s budget.
Maintenance Work: When universities own freehold properties, they have to take care of all the maintenance. This means they are fully responsible for keeping the property in good shape and following all the rules. This can be a lot for university staff to handle.
Less Flexibility: Freehold agreements are not as flexible as leasehold ones. Leasehold agreements can be changed or ended if needed, but freehold ties the university down more, making future planning harder.
Long-Term Commitment: Owning a freehold property can keep universities stuck in agreements that might not be the best in the long run.
Solutions: To handle these problems, universities should plan their finances carefully, get legal advice, and do thorough research. This way, they can make better choices when it comes to buying property.