Can you sell leasehold flat whilst retaining the freehold?

Fraise

I have a question that maybe someone on here could answer for me, please

If you own a 999 year lease on a flat including a quarter share of the freehold (the freehold is a company of which all 4 flat owners of the property are equal shareholders) could you sell your flat as a lea sold whilst retaining the freehold?

Many thanks in advance.

anselld

Generally yes, unless some term in the Lease forbids it. Why would you want to though?

HouseBuyer77

I suspect the buyer may not be happy with you but it is something you could do.

Though the other three flat owners might not be happy with you either, I don't know much about how these freehold share companies work but perhaps they could force you to sell it on? Perhaps there's some condition in the setup of the company that means you have to be one of the leaseholders?

eddddy

How are decisions made by the freeholders? For example, if you continued to own a share and the roof needs repairs, would they need your agreement, or would it be a simple vote between four of you?

I doubt the leaseholders, freeholders or you would want to involve you in this decision making.

And if the roof did need repairs the freeholders might decide to just pay the bill (i.e. including you), to avoid the hassle and legalities of a section 20 consultation.

So you might end up paying for building repairs with no route for claiming back the costs.

stator

You would put off a lot of buyers once they find out

skintpaul

cannot see why you would want to keep share of F/H, if selling the flat? only income would be ground rent?

G_M

Maybe.

They are separete legal entities so can be bought and sold separately in most cases.

In some cases however, the lease specifies that the leaseholder automatically becomes a shareholder in the company which owns the freehold, and that on selling the lease, the individual loses their shareholding in the freehold company.

read the lease.

katejo

skintpaul wrote: »

cannot see why you would want to keep share of F/H, if selling the flat? only income would be ground rent?

And perhaps you would still be partly responsible for organizing the building insurance (together with the other freeholders) and billing your leaseholder for it? Then if a claim were to arise....?

I also think it would put buyers off

Fraise

Thank you all for your answers. Much appreciated. As it happens it isn't me who wishes to do this, it's a shareholder of another freehold property who said he had been thinking about it. My understanding is that the freehold can be bought by a leaseholder after two years anyway, but I just wanted to clarify if this person could indeed sell just the lease to the flat whilst retaining the freehold. I'm not sure of his agenda, but maybe he's been badly advised.