Buying freehold title - limit of 4

sderrick

Hi,



Myself and partner are buying a Leasehold flat along with the Freehold title, which is part of a block of 4 converted flats.



We won't be paying any ground rent/service charge etc.



My solicitor has just emailed saying that as there is currently 4 names on the title, which is the limit and she is asking which once of us wants to put their name down as only one can.



It seems strange but they are assuring that it hold no value as we will both be legal owners for the leasehold.



Just wondered if anyone here has any advice? Does it matter? Whats the advantage/disadvantage of being named?

antrobus

sderrick wrote: »

....My solicitor has just emailed saying that as there is currently 4 names on the title, which is the limit and she is asking which once of us wants to put their name down as only one can.

It seems strange but they are assuring that it hold no value as we will both be legal owners for the leasehold. ...

There is nothing strange about it; it's the Law of Property Act 1925. And owning a share of the freehold is of some value, because it means it won't cost you anything when you want to extend the leasehold.

sderrick wrote: »

...Just wondered if anyone here has any advice? Does it matter? Whats the advantage/disadvantage of being named? ...

Yes. Follow your solicitor's instructions.

eddddy

antrobus wrote: »

And owning a share of the freehold is of some value, because it means it won't cost you anything when you want to extend the leasehold.

... as long as the four of you agree not to charge each other for extending the leases, and you can all agree on who pays the legal fees, and everyone cooperates in signing the documents, etc.

(For example, the person who wants to sell their flat wants their lease extended, but the other three can't be bothered to cooperate, because they're not selling theirs.)

But as long as your joint freeholders are reasonably sensible and rational, it's a good arrangement.

G_M

You might want to look further into the lack of serice charge.

1) There must be some general maintenance? Electricity bill for lighting the shared hall? Insurance? etc Maybe these bills are just informally shared as/when they arise, but check whose name they are in, and how well the 'sharing' works in practice.

as edddy says above, if everyone cooperates, it's fine. But if one person receives the bill and the others ignore the request for their share......

2) future renovation/maintenance. Roof starts leaking. Banisters break. Front door entry system stops working. Hall needs painting.

It's useful to have a reserve fund ready to pay for things in the future. If not, arguments about whether/how to fix if one person is short of money when needed.

see

https://forums.moneysavingexpert.com/discussion/comment/70013458#Comment_70013458