Some flats offer a share of freehold. But what does this actually mean?
In this article, Leasehold and Freehold Property Specialist Jason Grimster explains the meaning of share of freehold…
What does share of freehold mean?
If you purchase a flat that has a ‘share of freehold’ it means that you will have some outright ownership over the property and its land.
This ownership will be shared with other people that also own a share of the freehold.
Owning a share of freehold will generally give you more control over the block of flats and can allow you to have a say in how it’s being run.
This means that you won’t have a potentially exploitative landlord telling you what to do.
How does share of freehold work?
The higher percentage of the freehold that you own, the more benefits you have.
If you own a share in the freehold, you have a responsibility to maintain the condition of the percentage of the property that you own. So, if you own 50% of the freehold, you need to maintain the condition of 50% of the property.
Those who own the freehold, but don’t want to take on extra work can appoint a managing agent to deal with the maintenance, for example, if the other leaseholders agree to this.