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.
What does leasehold with share of freehold mean?
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 the same as shared ownership?
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.
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.
When to buy share of freehold or leasehold?
You are buying a leasehold and also a share of the freehold (read about buying a leasehold A leasehold for the part of the building which you live in. It continues to have a lease with a fixed term, whether you extend it or not (which means you need to always ask how many years are there left to run on the lease).
How many flat owners can share a freehold?
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 by up to four flat owners.
Can a share of a leasehold make it more valuable?
You can negotiate a longer lease directly with the other freeholder/s or with the managing company which you own a share of Extending your lease makes your leasehold interest more valuable. One less bill to pay compared to a normal leaseholder. You can more easily negotiate matters like developing the property or varying other terms of your lease
Who is a freeholder and who is the leaseholder?
A freeholder is often a company, although occasionally it is an individual. A person who owns both a lease and a share in the freehold wears two different legal hats.
