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. This usually applies to apartments.
Is share of freehold bad?
There can be real challenges. Having flat owners with shares in the freehold can at times lead to deadlock over crucial decisions such as to whether to incur large service charge bills on major works. In effect, disputes which would have been between leaseholders and landlords become disputes between neighbours.
Do all freeholders need to agree?
Yes. Every time one of the share of freehold properties is sold, all freeholders have to sign their consent for the transfer of the title to a new owner’s name. If any joint proprietor party is either not available or unwilling to cooperate, or both, this creates a legal impasse stopping the transfer from going ahead.
What is the difference between leasehold and share of freehold?
Share of freehold 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. Landlords can also stop leaseholders selling their flats.
What is the benefit of owning a freehold?
The advantages of a freehold The advantage of a freehold property is that you have complete control over it, and are not subject to any further payments, like ground rents, service charges or admin fees, which can be the case with leasehold properties.
How do I know if my property is ex local authority?
So how do you find out? There are two ways to determine whether a house or flat is ex council (Local Authority). If the property is for sale, the estate agent will have details on the history of the property. If the property is not for sale, you can purchase a copy of the title deed from Land Registry for a small fee.
