Does share of freehold still have a lease?

fimonkey

I'm confused as last year I almost bought a flat that owned the freehold (it was a converted house with one other flat downstairs that was leasehold) and my solicitor showed me that there was still a lease on both flats, though extending it seeing as I would also be the freehodler wouldn't be a problem.

Now I'm going to look at a flat that has a share of the freehold with the flat downstairs (same deal, converted house) and the EA have categorically stated that as it is share of freehold there is no lease.

Are they right?

If they're wrong, and the lease needs extending, would I have to pay the other share-of-freeholder?

Thanks in advance

Fi

Doozergirl

They are wrong. At least I hope they are. Lord knows why an EA doesn't know the difference between these types of property!

You understand already about owning the freehold but the flats both having leases, it's essentially the same but with Share of Freehold, each flat that participates has an equal share in the ownership of a company which has the freehold as it's asset. Each flat still has a lease.

If the lease needs extending then it's unlikely that the freehold 'company' will charge you as it belongs to all of you and you all have leases - so if yours needs extending, it's highly likely that theirs would too. So there's no incentive for each of you to charge.

What often happens with share of freehold is that the leases are reset at 999 years. There will be the administration of this which you have to pay the solicitor for.

So yes, you still need to find out how long the lease is and if the EA still says there isn't one then you can tell them that a flat with no lease is almost certainly unmortgageable, regardless of the ownership of the freehold.

fimonkey

Thanks Doozergirl, I'm viewing the flat tomorrow so will let them know this info.. seems to me the majority of EA's in my area are barely out of school and confused by even the simplest questions.

Cheers

Richard_Webster

The confusion isn't helped by the fact that some share of freeholder flat sellers will swear black is blue that they don't have a lease....