Becoming a Freeholder - implications

hermanmunster_3

Hi

I am looking to buy a ground floor property - there is a leasehold flat upstairs. The person who buys the ground floor gets the freehold - anyone got any idea what the implications are - I am new to all this !!!

What sortt of questions should I be asking the the solicitors ????

Thanks
Herman

Doozergirl

You need to read the lease to know what the implications are.

If the lease upstairs is less than 80 years, then it's a lovely little bonus as the lease will need to be extended at some point.

You will probably have to organise the insurance for the biuiilding and claim half back from the people upstairs. The cost of work will be split between the two of you.

Ultimately a freeholder should never be out of pocket because of their role. All costs get split between the flats or, if it only relates to the lease upstairs, they have to pay all associated costs.

TBeckett100

i think you have to set up a management company or something?

sooz

I don't think you have to set up a company.

However, it would be a very good idea to read, as well as the lease, the duties and obligations of a freeholder in general. The legislation has changed a lot in the last few years Have a look at http://www.lease-advice.org/ for more information.

Have a look at the Leasehold and Commonhold Reform Act 2002.