What is share of a freehold?

What does a share of freehold mean?

Buying a property with a share of freehold means you own the leasehold of your property, plus a share of the freehold for the land and building the property is in.

Is it good to have a share of freehold?

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 share of freehold mean in UK?

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. Usually the freehold title is registered in the name of a company in which the flat owners will be shareholders.

Does share of freehold mean you own the land?

As the name suggests, share of freehold refers to the joint ownership of a property, in this case the apartment building, between a number of freeholders.

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). However, shorter leases become problematic sooner than you may think.

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Do freeholders pay ground rent?

Benefits of having a freehold

deal with the freeholder (often known as the landlord) pay ground rent, services charges or any other landlord charges.

How much value does share of freehold add?

How much does freehold add to house price? According to surveyors, owning a freehold adds 1% onto the value of a flat when compared against a similar property. But the increase in property value isn’t always necessarily a persuasive factor.

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 …