Is share of freehold the same as leasehold?

Is share of freehold leasehold?

In recent years the option to become a share of freehold owner has become much easier. … Essentially it works by the owners of leasehold flats buying the freehold off the freeholder and then all owning a share of it. They then own their properties leasehold and a share of the building and the land it is on freehold.

Is it good to have 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 it mean to have a share of freehold?

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.

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Do you pay ground rent if you have a share of freehold?

When you buy a freehold property you own the property and the land it sits on. If your property is a leasehold property you’ll have to pay an annual charge, known as ground rent, to the person who owns the freehold.

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).

What is a shared leasehold?

What is a shared ownership lease? In addition to the usual leasehold property there is a form of leasehold property referred to as a shared ownership lease where the leaseholder can purchase a share of a property (house or flat) and pay rent on that part of the property retained by the landlord.

Why is there a lease on share of freehold?

Gaining a share of the freehold generally allows leaseholders to have more control over their homes. It is a legal right to be able to take over the freehold, as long as you have at least half of the other residents willing to also do so.

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 …

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Can you own both freehold and leasehold?

you can opt to become a share of freeholder, sell one of the leasehold titles (cash) and retain one yourself (although you can’t create and own both the share of freehold and leasehold title in the same name); you can award yourself a very long lease (up to 999 years maximum) and remortgage your leasehold title for …

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).