Do share of freehold properties have a lease?
If you gain a share of freehold for your building, you will still own your property on a long lease. However, as a co-owner of the freehold of the entire building, you and the other co-owners now have control over lease lengths. This means that you can renew your lease and only pay for the legal fees.
Does a freeholder have a lease?
Even though you will have purchased the freehold of your building, the leases of your flats will remain in place. You will be a leaseholder of your flat and a joint freeholder of the building. Once you have completed the purchase of the freehold, the joint freeholders can grant a long lease of the flats at no premium.
Can I rent out my share of freehold flat?
Renting a share of freehold flat is possible, but depends on the conditions of the lease. With any breed of freehold flat, renting is difficult because you’re not the sole owner of the building. To do so, what’s called a ‘consent to let’ needs to be written into the lease that’s held between each of the flats.
Is it worth buying a share of the freehold?
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.
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?
Newly-created leases can be anything from 99 or 125 years to 999 years. 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).
Do I need to extend my lease if I own the freehold?
Mortgage lenders and future buyers will still want the lease to be extended, regardless of the fact that the flat benefits from part-ownership of the freehold. … All other freehold-owners must be in agreement to your proposed extension; although they don’t all necessarily need to extend their leases at the same time.
Who pays for repairs on a leasehold property?
Paying for repairs
You have to pay for any repairs that the lease says are your responsibility. You may also have to contribute to repairs that the freeholder is responsible for. A freeholder’s building insurance may cover all or part of the cost of repairs.
What rights do I have as a freeholder?
The freeholder will have their title registered with the land registry.
This blog will look at 5 common areas that are the responsibility of the freeholder.
- Repairs and Maintenance to Building Structure. …
- Cleaning and Maintenance of Communal Areas. …
- Ground Rent and Service Charges. …
- Building Insurance. …
- Management Reports.
What is the problem with a freehold flat?
The legal problem is that there is no automatic system of making the liabilities to pay monies run automatically with freehold land – this means that within the building your freehold flat is situated you are reliant upon your neighbour to maintain part of the structure such as the roof mains walls or foundations and …
Does buying freehold increase property 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.
What is share of freehold property?
UK: ‘Share Of Freehold’ Explained
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 does not entitle you to simply ignore the terms of the lease.
Is freehold better than leasehold?
However, to put this in perspective, any lease over a hundred years is generally not going to be problematic – but really, the higher the better, up to 999 years.
|No additional extras as part of your purchase||Additional extras (gym/car park/manicured gardens/cleaned communal areas)|
Can a freeholder refuse to sell the freehold?
Can a freeholder refuse to sell the freehold? A freeholder can only refuse to sell the freehold if the qualifying requirements are not met. For example, leaseholders may ask if you will sell the freehold to them even if more than 50% of the leaseholders do not wish to participate.
How do I know if I own the freehold?
You can also ask the mortgage lender who will have information on your title. 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.