Share of freehold

What does share of freehold mean? Put simply, a freehold is the common ownership of property or lan and all immovable structures attached to such land. The first is where the freehold is split jointly between a number of flat owners within the property and the freehold is held in their personal names. There are two basic set ups for the ownership of the freehold , the first is that the freehold is owned jointly by a number (up to four) of the flat owners in their personal names and the second is where a company is the owner of the freehold and each of the tenants hold a share or membership in that company. Therefore when you obtain a share in the freehold your name will either be noted on.

The phrase ‘with share of freehold ’ does not therefore necessarily give an advantage to the buyer of a flat. It is imperative to ensure that in selling a flat with a share of the freehold , the implications of owning the freehold and its challenges are understood. Ol’ Blue Eyes may have been singing about love not leases, but the words may still mean all, or nothing at all. Conveyancing clients and particularly first time buyers often get confused when they are interested in buying a property which is a share of freehold property, especially as this may be specifically marketed heavily (the freehold aspect) by estate agents.

Owning a share of freehold. You can buy the freehold from the landlord along with other leaseholders - for example, other people living in a block of flats. You can do this as long as at least half of the leaseholders agree to buy a share. Doing this gives you more control over your home and the costs you pay out.

Whilst you will also have a share in the freehold , what you actually own is a share in the company that owns the freehold – this means that you own it together with all the other leasehold owners (usually). When you come to sell, your buyer will be buying your leasehold title from you and your share in the freehold. Question: Can you explain what is meant by a share of a freehold flat? Is there still a lease?

I thought that most freeholds were owned by companies. Answer: Most apartments are leasehol which means that you will have a contract that entitles you to occupy the flat for the term of the lease. They are responsible for insuring and maintaining the building.

Few have taken up this form of. You can ask the landlord to sell you the freehold at any time. There are different legal steps and rules depending on whether your home is a: flat - you’ll need to buy a share of the freehold. The most common misconception of a share of freehold property is that you no longer need a lease of your flat. That is not the case.

Without the lease, you would lose the covenants in it which allow you as freeholders to do such things as collect service charges. Ownership of the freehold does not affect the validity of the leases which will remain in place. Share of freehold could also add value to your property if you feel that the building will be better run as a result. A well-managed and maintained building can add value to every property within it.

Is share of freehold the same as leasehold? If gain a share of freehold for your building, you will still own your property on a long lease. A “ share of the freehold ” is kind of a mixture between a standard freehold and standard leasehold.

Buying the freehold can give you more control over what you pay out in maintenance charges and protect the value of your property - but buying a share of the freehold in a block of flats is different from buying the freehold of a house. The phrase ' share of the freehold ' can cover various legal situations. A share of freehold will usually increase the selling price of a leasehold flat. You should first find out which type of ownership.

A good solicitor should be able to advise you as to the existing management arrangements and structure. They should consider the relevant paperwork and advise you on whether or not your investment is likely to be. Through a freehold company. This is the more common means by which the freehold to a property is acquired. If you already own a leasehold property, you may be wondering what the advantage is to owning a share of freehold.

Lease extension is often a less expensive option than a freehold.