The disadvantages of a freehold Freeholds are often more expensive, as you own the land as well as the property. They also usually refer to houses rather than flats, so trying to find a flat available for freehold purchase can be difficult.
Is it worth purchasing the freehold of our buy to let property?
If your property is a house it’s almost always worth buying the freehold, as there’s no real reason why you should be paying additional money for the land it’s built on. You will however, have more control over what you pay.
Is there a problem buying a freehold flat?
There’s nothing wrong with a freehold flat per se. The problems are down to mortgage lenders. Most of them don’t see a freehold flat as good security, a problem to mortgage as well as difficult to sell. In fact, very few lenders will even consider loans against them.
How much value does a freehold add to a property?
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 happens when you buy a freehold?
Buy the freehold and you can usually extend the lease to 999 years for free. The only outlay would be legal fees. It’s important to realise a flat with a share of the freehold differs from a freehold house. Flat-owners with a share of the freehold own the freehold jointly with a building’s other freeholders.
Do I need a solicitor to buy the freehold on my house?
Will I need a solicitor? Yes, you will need a solicitor to advise all leaseholders and manage the conveyancing process on your behalf. You should look for a solicitor who has experience in residential enfranchisement (buying the freehold).
Is a freehold property worth more than a leasehold?
Freehold is often more expensive than leasehold at the outset. However, it’s worth doing a long term comparison, as although the freehold may cost more upon buying it, leasehold buildings often come with ground rents, service charges and even admin fees.
How do I value my freehold?
The valuation of a freehold of a block of flats with long leases is based on the investment value. Multiply the ground rent figure by the year’s purchase. This is calculated by the valuer or more usually taken from the valuation table.
How do I purchase the freehold of my property?
Leaseholders who own a house can buy the freehold of their house either under the law if they meet certain criteria (formal route), or by asking the freeholder to see whether they are willing to sell the freehold informally (informal route).
