Whilst you will also have a share in the freehold, what you actually own is a share in the company that owns the freehold – this means that you own it together with all the other leasehold owners (usually). When you come to sell, your buyer will be buying your leasehold title from you and your share in the freehold.
How much value does share of freehold add?
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.
What is the difference between freehold and shared freehold?
A: When buying a house, you usually buy it as a freehold building. However when buying a flat, it is usually owned on a share of freehold basis or a leasehold basis. A share of freehold typically refers to when you and the other owners each own a share of the freehold, collectively owning the whole freehold.
Is share of freehold a good thing?
Are there any benefits to having a share of freehold? In short, yes. Having a share of freehold gives you greater control over things such as maintenance obligations which removes the possibility of being taken for a ride by an unscrupulous landlord.
Does buying share of freehold increase property value?
You could add value to your flat If you already had a decent length lease, eg, 999 or 99 years, buying a share of freehold will make little profit. You would still have to pay the same legal costs as someone with a short lease, but would only add a smidge to the flat’s value.
Can a freeholder change the terms of a lease?
The landlord or the leaseholder cannot change the lease terms without the other party agreeing to the change. Otherwise the terms of the lease can be changed in certain circumstances by making an application to the Tribunal by either the landlord or the leaseholder.
Do I have to wait 2 years to buy the freehold?
You need to have been the registered owner of the house for two years. In most circumstances it does not matter whether you live there. Buying the freehold can be a difficult process.
Is it expensive to extend a lease?
Extending short leases is pricey – we’re talking tens of thousands – but sometimes the combined cost of the cheap property and the lease extension adds up to less than you could flog it for once it has a lease which has been extended by 90 years. It also means that you could end up paying less stamp duty too.
