Some flats offer a share of freehold. But what does this actually mean?
In this article, Leasehold and Freehold Property Specialist Hannah Faith explains the meaning of share of freehold…
What does share of freehold mean?
If you purchase a flat that has a ‘share of freehold’ it means that you will have some outright ownership over the property and its land.
This ownership will be shared with other people that also own a share of the freehold.
Owning a share of freehold will generally give you more control over the block of flats and can allow you to have a say in how it’s being run.
This means that you won’t have a potentially exploitative landlord telling you what to do.
How does share of freehold work?
The higher percentage of the freehold that you own, the more benefits you have.
If you own a share in the freehold, you have a responsibility to maintain the condition of the percentage of the property that you own. So, if you own 50% of the freehold, you need to maintain the condition of 50% of the property.
Those who own the freehold, but don’t want to take on extra work can appoint a managing agent to deal with the maintenance, for example, if the other leaseholders agree to this.
Share of freehold vs leasehold
The difference between the share of freehold and leasehold is that someone that owns the leasehold (also known as the leaseholder) only leases their flat (for a fixed period of time).
Whereas someone who owns a share of the freehold (also known as the freeholder), leases their flat AND has some outright ownership over the property and its land.
If you own a share of the freehold, you have a say in how the property is ran. If you only own the leasehold, you don’t and answer to the landlord/freeholder.
Do I need to extend lease with a share of freehold?
If you own a share of the freehold, you will still own the leasehold– meaning you will still have to extend your lease if you need/want to.
Read more about lease extensions in our dedicated article here.
More on the share of freehold
To find out more about the share of the freehold, the value of it, the pros and cons and the fees involved, you can read our more in-depth guide here.
Or if you would like to speak to a solicitor, you can do so below.
Specialist share of freehold solicitors
If you’re looking to buy a flat that has a share of freehold or looking to acquire a share in the freehold on a property that you already own, we’d be happy to assist you (and field any questions).
Our specialist team are one of the largest in the area and have experience in all aspects of leasehold property including freehold purchase, enfranchisement, lease extensions and more.
Call us on 01202 499255, or fill out the form at the top of this page, for a free initial chat.
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