The obvious advantage of having a share in the freehold is that it gives the flat-owner a direct say in what happens on his block or estate. In some (but not all) circumstances, owning a share in the freehold may include valuable additional rights such as the right to a lease extension for nominal consideration.
What does it mean if you have a share of the freehold?
A: Buying a share of freehold means that you will acquire a shared ownership of the freehold title relating to the building, as well as a leasehold interest in the individual flat. Owning a share of the freehold also means that the lessees can have greater control of the day-to-day management of the building.
Do all freeholders need to agree?
Yes. Every time one of the share of freehold properties is sold, all freeholders have to sign their consent for the transfer of the title to a new owner’s name. If any joint proprietor party is either not available or unwilling to cooperate, or both, this creates a legal impasse stopping the transfer from going ahead.
Can I sell my share of freehold?
When the owner of a leasehold property with a share of freehold wishes to sell, they have the option to sell the share of freehold together with the property.
Does freehold increase value?
Purchasing the freehold can also add value to your home, especially if your lease is running short. But a freeholder will have more control, and a better-managed estate could increase the value of the property.
Is share of freehold more expensive than leasehold?
Freehold is often more expensive than leasehold at the outset. However, it’s worth doing a long term comparison, as although the freehold may cost more upon buying it, leasehold buildings often come with ground rents, service charges and even admin fees.
How is a share of freehold set up?
But a share of freehold is something different and can be set up in a few different ways. 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. This can be done with up to four flat owners.
What happens when a share of a freehold property is sold?
Every time one of the share of freehold properties is sold, all freeholders have to sign their consent for the transfer of the title to a new owner’s name. If any joint proprietor party is either not available or unwilling to cooperate, or both, this creates a legal impasse stopping the transfer from going ahead.
Do you pay ground rent on share of freehold?
“… length and value have little connection in a share of freehold Property. Paying Ground Rent: The partners in a share of freehold may still decide to pay a nominal ground rent to the registered company that they own. Paying a Service Charge: It is up to the partners in a share of freehold how…”
What are the cons of a share of freehold flat?
Cons of a share of freehold flat 1 While leasehold charges are predicatble, charges with a share of freehold flat can be spontanious. 2 Administration involved with the management of the building can be time consuming and if no done right could prove costly to rectify. 3 The share of freehold method only works with small amounts of flats. …
