Being the Freeholder - Pros and Cons?

Legacy_user

Looking at buying a one-bed flat to let out. It’s flat 3 of 3, in a converted house, and comes with the freehold to the whole house.

Assuming the lease agreements are in order and the building’s in decent repair, what are the main pros and cons of this arrangement?

Thanks

G_M

You get to control maintenance so you know it will be done, and can control the costs.

You get to receive ground rent.

You have an asset you can sell.

You have the responsibility/hastle of collecting ground rent, service/mainteance charges.

You have the responsibility/hastle of arranging insurance, maintenance etc

CashStrapped

Are you sure it is the full freehold of the property?

Normally in these small converted house type arrangements you have a lease and also a share of the freehold.

As I say in all these posts where people are purchasing potential leasehold flats, (even if you are getting part or all of the freehold), you need a solicitor who is well versed in leashold law. You must fully understand what you are purchasing, what your lease entails. Failure to do this correctly now, could cost you much more further down the line.

Also ring the Leasehold Advisory Service LEASE. It is a free helpline for leasholders with professionals in leasehold law ready to give advice.

G_M

CashStrapped wrote: »

Are you sure it is the full freehold of the property?

Normally in these small converted house type arrangements you have a lease and also a share of the freehold.

.

Often, yes.

But it is also common for the entire freehold to be held by one individual, often one of the leaseholders, which seems to be what the OP is describing.

System

G_M wrote: »

But it is also common for the entire freehold to be held by one individual, often one of the leaseholders, which seems to be what the OP is describing.

This is the case.

System

Thanks for the info, will give LEASE a call.