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Advice needed: Benefits of a share of a freehold?
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JJmcClure
Posts: 49 Forumite
Hi everyone
Simple question: What are the benefits of a share of the freehold?
Is it always a good thing or are there potential pitfalls?
Thanks
Simple question: What are the benefits of a share of the freehold?
Is it always a good thing or are there potential pitfalls?
Thanks
0
Comments
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vs what? leasehold? commonhold? being the outright freeholder?
Normally the choice would be vs. leasehold. If you own a share of the freehold it gives you a direct share in block management vs. the indirect arrangement if you have a separate freeholder. All the shareholders will group together to manage communal areas.
You also have a share in the reversionary rights, so extending the lease shouldn't be a problem (although if you live for 2yrs in a leasehold, it's not really a problem either although you will have to pay for it).0 -
Thanks for replying
It's a leasehold. Has a 999 year lease. It's in a block of six flats in south London. Inside, it's fantastic, but the outside isn't pretty. Was probably built in the 70s. it It doesn't look like it's being maintained very well
If the other flat owners also have a share of the freehold, would I need to get them to agree to sorting out the front of the flats? Would a potential pitfall be if the other owners don't want to increase maintenance on the outside of the flats
The estate agent says their is an agreed pot of money - each flat owner puts £50 in a month and then if all agree, maintenance can be done on the flats
It's a brilliant flat really near a train station and is perfect for me in every way but I'm concerned the outside view might put off potential buyers in the future (although it's not putting off me at the moment)0 -
Eventually the outside is going to need to be fixed and it will probably run to thousands or even teens (sic) of thousands per flat. Is there a management company? A sinking fund? Directors elected from the leaseholders? If no to any of these I'd consider very carefully as this could be a minefield. If walls, roof or window starts leaking in a few years and the others don't agree to pay up ...
Superb website:
http://www.lease-advice.org/Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️0
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