Collective Freehold

fouka

Hello MoneySavers,

I am really keen on getting on the property ladder this year and will properly end up first-time buying a flat. I've seen a couple of properties and the "collective freehold" description comes up times and times again. Could someone explain what it stands up for? I know what freehold and leasehold are but have never come across 'collective' freehold. Is it something to be wary of?

Thanks

missk_ensington

I don't know if I'm right as I've never heard it called this before, but my guess is that at one stage there was a Freeholder (one person in one flat being the Fat Controller) and over the last few years laws have come into force that given other leaseholders an opportunity to share the role of Freeholder and I assume these properties in question have exercised that right?!?

I would guess it means one man (or woman) can't decide to get a new roof, it would have to be a majority vote amongst all the leaseholders.

I could be wrong though, so please check! This is just an educated guess!

Doozergirl

The leaseholders have gotten together and bought equal shares in the freehold.

THey either manage the block themselves as a commitee or they employ their own managing agents to run the building and the communal parts.

It's generally seen as a great bonus as everyone gets a say in what happens and it's easier to keep costs down when you don't have a money-hungry managing agent.