share of free hold

mosheba

Hi,

I’m in a process of buying a flat in north London (crouch end). 2 bed flat. I’m a first time buyer.
The flat advertised as ‘share of free hold’.
When my solicitor started to work on the agreement, he explained to me that I will get 1/3 of the free hold of the building (it’s a converted house to 3 flats) and there is a lease of 125 years on the flat itself.
Does it make sense? Do you see any problem with it?

Thanks,
M

princeofpounds

Seems normal to me. I'd just clarify whether you are going to be a joint owner of the freehold or, more likely, a 1/3rd shareholder in the company that owns the freehold. But nothing you've said seems odd.

Richard_Webster

It can be a very good situation because you have no oustide freeholder trying to make a profit out of you, but it can also be very bad if the individuals involved don't get on.

You should try to make contact with the other two co-freeholders to see what they are like. Ask them about money spent on the building and how decisions are made about what is spent. If any of them are funny with you now, they will be funny with you later, and whatever rights you may have under the lease will be all very well, but quite expensive to enforce in court.

For instance if there is a potential £10K bill for a new roof, will you be prepared to stump up all the money and hope the others contribute? Probably not, but that often means it gets left because one or more lessee doesn't think the work is needed or hasn't got the money.