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 share of freehold add value?

Gaining share of freehold could add value to your property if your lease is short (85 years or below). Share of freehold could also add value to your property if you feel that the building will be better run as a result. A well-managed and maintained building can add value to every property within it.

How do you value a share of 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.

Does share of freehold have a lease?

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 it mean to buy share of freehold?

Certificate ( share of freehold Only) – where the property you are buying is share of freehold you are essentially buying into a percentage of the freehold. The freehold company you are becoming part of is a Limited Company registered at Companies house.

How many flats do you have to buy to buy freehold?

At least half of the total number of flats in the building must be owned by leaseholders who want to buy a share of the freehold – so you don’t need to have all owners on board but you do need to have at least half of the flat-owners involved. If there are only two flats in the building, then both leaseholders must want to buy the freehold.

Do you have to be a leaseholder to buy a freehold?

At least half of the total number of flats in the building must be owned by leaseholders who want to buy a share of the freehold – so you don’t need to have all owners on board but you do need to have at least half of the flat-owners involved.

Can a limited company own a freehold of a building?

Together own the freehold of the building (often by forming a limited company – this company will be owned and controlled by the flat owners); and Once you jointly own the freehold, you can collectively set ground rents, shop around for the best insurance and generally be in control of your own destiny.