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Buying freehold
bouicca21
Posts: 6,704 Forumite
Two properties that I am looking at have an indication that it might be possible to buy in one case the freehold for the whole building (consisting of 2 purpose built Victorian maisonettes) and in the other (a new conversion of a large Victorian house) that there might be a share of freehold on offer.
Obviously there can be pitfalls about being a freeholder, and I'd be considering it very carefully. In the case of the new conversion I'm not even sure that the developer has set up a company to managed the freehold, so it's all a bit vague. Obviously I need to firm up the details but before I do so I'd welcome any advice about what buying a freehold or share of freehold is likely to cost - is it likely to be some kind of percentage of the purchase price of the lease? And if the developer does have to set up a management company would that be at his expense or the expense of the flat owners? Is it likely that in order to levy maintenance/ground rent charges he would be well advised to set up some sort of holding company anyway?
Obviously there can be pitfalls about being a freeholder, and I'd be considering it very carefully. In the case of the new conversion I'm not even sure that the developer has set up a company to managed the freehold, so it's all a bit vague. Obviously I need to firm up the details but before I do so I'd welcome any advice about what buying a freehold or share of freehold is likely to cost - is it likely to be some kind of percentage of the purchase price of the lease? And if the developer does have to set up a management company would that be at his expense or the expense of the flat owners? Is it likely that in order to levy maintenance/ground rent charges he would be well advised to set up some sort of holding company anyway?
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