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Homebuyers "in the dark" over property basics

Many young prospective homebuyers may be making the wrong decisions because they do not understand fundamental aspects of the property market, new research has revealed.

According to a survey by AA Legal Services, conducted as part of its Safe as Houses campaign, which encourages people to make informed house purchase decisions, 40 per cent of first-time buyers are unaware of the difference between a leasehold and freehold property.

People aged between 18 and 24 were found to be the most ignorant of standard housing terms, with only 57 per cent knowing the meaning of the term leasehold, while Scotland and the north-west of England were named the least knowledgeable areas – indicating a "north-south divide" on property literacy.

James Molloy, head of AA Legal Services, said: "Our research suggests that many homebuyers are so desperate to get on to the property ladder that they may be overlooking vitally important basic legal principles.

"For years, the legal community has not helped much in terms of engaging the public on legal aspects of homebuying."

High market prices are causing many existing property owners to resort to home improvements, with a loft conversion rated the alteration that can add the most value to a house by GE Money.

See how much you could borrow with a home improvement loan from Lombard Direct.

06/06/2007 13:37:23

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