Share of freehold & confused

loulou41

I asked the EA about a lease on a share of freehold flat and was told

The property is actually a shared freehold so there is no lease or service charges as the freehold is shared between the two properties as its a converted house.


I made another enquiries from another estate agent about another share of freehold flat and was told the flat has got 115 yrs but no ground rent or service charge.


Pl can somebody clarify does a share of freehold flat has a lease or not?


I understand with share of freehold if you want to sell your flat the another freeholder must sign a transfer form and his ID verify by a solicitor. Also if there is no service charge they might not cooperate to pay for repairs. With a share of freehold flat do you have to pay for a joint insurance? Will need to do more research. Thanks

Tiglet2

Yes, there will be a lease. The flat will be leasehold, but you would own 50% of the freehold title too.

You could download both titles plus the lease from Land Registry if you wish to go through all the documents before considering whether to go ahead and purchase.

As an aside, the EA will not know the answer to any legal queries, other than any information supplied by the vendor. The EA is a salesperson. He will tell you anything to secure a sale. It's the solicitor who will advise on legal matters, however for a relatively small sum of money, downloading the deeds from Land Registry could save you solicitor fees.

hazyjo

Basically - yes you will still have a lease. It is a leasehold flat still. Usually, each flat will have a share in a company that owns the freehold (rather than a separate independent freeholder).


It can work well, or it can be a nightmare. The two flats I owned years ago were SoF. Both great - first one, 10 flats. Second one, same set-up as the one you want.


There can be a service charge/sinking fund. If say the roof needs doing in the immediate future, if it's a shared expense, there may well be a service charge.


Not aware of the transfer form, etc.


Buildings insurance is usually shared (as far as I know).


Not everything is standard so terms will vary from one property to the next. You'll need to see the lease. Would be wise speaking with the other neighbour.

Tiglet2

Usually, each flat will have a share in a company that owns the freehold (rather than a separate independent freeholder).

OP has said that there are two flats in a converted house, which suggests that the freehold will actually be split into two and that the two owners of the freehold will be named on the title deeds. Management Companies are usually the set up when there is a block of flats (i.e. more than two) and each leaseholder owns a share in the management company.

The transfer refers to the freehold title. When one flat owner decides to sell, they are selling the leasehold and the freehold title. The leasehold transfer is signed by the seller only, whereas the freehold transfer would be signed by both freeholders.

elverson

In a share of freehold flat here. One of the owners organises the buildings insurance each year and we split the cost. Ditto for repairs - the lease states which of these are "joint" and which are "individual" responsibilities.