If you buy a property with a Share of Freehold, this means you own your property leasehold plus a share of the freehold for the building your property is in and the land it’s on. … You will have a contract with the landlord, or freeholder, to set out your legal rights and responsibilities.
Is share of freehold a good thing?
Are there any benefits to having a share of freehold? In short, yes. Having a share of freehold gives you greater control over things such as maintenance obligations which removes the possibility of being taken for a ride by an unscrupulous landlord.
Does share of freehold still have a lease?
When you own a share of freehold, you own a flat which is held under a long lease but you also own the freehold jointly with the other flat owners in the building. You, in effect, have two roles.
Is share of freehold bad?
Owning a share of freehold can have its drawbacks. For example, the administration involved in the management of a building can be time-consuming. Poor management can lead to a range of problems. You should note that acquiring a share of freehold is generally a good thing but doing so does come with its own issues.
What is the difference between freehold and shared freehold?
A: When buying a house, you usually buy it as a freehold building. However when buying a flat, it is usually owned on a share of freehold basis or a leasehold basis. A share of freehold typically refers to when you and the other owners each own a share of the freehold, collectively owning the whole freehold.
How do I transfer share of freehold?
How do I transfer share of freehold? If you own a share of freehold for your property, you will need a formal deed in order to transfer ownership. This deed will transfer ownership from yourself and the other co-owners of the freehold, over to the new owner of your property and all the other co-owners.
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.
How do I extend my lease with share of freehold?
If you are lucky enough to own a flat and a share of the freehold the good news is that the process of extending is relatively straightforward and the costs are fixed (and low). The first step is to agree this with the co-owners. You cannot usually act alone however extending the lease will benefit everyone.
What happens to my lease if I buy the freehold?
Plus leaseholders must pay ground rent (usually small) and service charges (often a fair whack) to the freeholder. Buy the freehold and you can usually extend the lease to 999 years for free. … Flat-owners with a share of freehold still have a lease. They could still need to extend (though it should be free).
Is a 999 year lease as good as freehold?
A 999 year lease is effectively as good as freehold, and there can even be some advantages to owning some properties this way, rather than under freehold (see below). … If a lease has less than 80 years left to run, it may make the property hard to sell, and it may even be difficult to remortgage.
How much does share of freehold add value?
For these reasons, buying the freehold may increase its value – by as much as 10 per cent according to estate agents – and make it easier to sell your home in the future. “Freeholders have more control over the management of their homes,” says a spokesman for the housing charity Shelter.
How do I know if I own the freehold?
Alernatively, you can go to the Land Registry website and search for an entry for your property. Most property is registered and you should be able to obtain a copy of your title who will confirm whether the property is freehold or leasehold.
Can flats be sold freehold?
You can ask the landlord/freeholder to sell you the freehold at any time. By law, they must offer all leaseholders first refusal to buy the freehold if they wish to sell it. Buying the freehold to your flat isn’t something you can do on your own though, to qualify you have to get your neighbours involved too.