Your question: Is share of freehold a good thing?

Is it better to have share of freehold?

The obvious advantage of having a share in the freehold is that it gives the flat-owner a direct say in what happens on his block or estate. In some (but not all) circumstances, owning a share in the freehold may include valuable additional rights such as the right to a lease extension for nominal consideration.

Does share of freehold add value?

Gaining share of freehold could add value to your property if your lease is short (85 years or below). … Share of freehold could also add value to your property if you feel that the building will be better run as a result. A well-managed and maintained building can add value to every property within it.

Is share of freehold better than leasehold?

The price of a share of freehold flat could well be higher than a leasehold one, but any difference is likely to be relatively small unless a leasehold flat has a short lease remaining. This would come from the fact that leaseholds dwindle over the years and so the nearer they get to the end, the less they are worth.

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What is the benefit of owning a freehold?

Benefits of owning the freehold to your flat:

Free lease extensions: you can usually extend the lease to 999 years at no extra cost (excluding legal fees) You control service charges: you can choose value for money, quality providers. No ground rent: you normally don’t pay ground rent.

Is a 999 year lease as good as freehold?

Newly-created leases can be anything from 99 or 125 years to 999 years. A 999 year lease is effectively as good as freehold, and there can even be some advantages to owning some properties this way, rather than under freehold (see below).

Do freeholders pay ground rent?

Benefits of having a freehold

deal with the freeholder (often known as the landlord) pay ground rent, services charges or any other landlord charges.

Is my house worth more with freehold?

Purchasing the freehold can also add value to your home, especially if your lease is running short. … But a freeholder will have more control, and a better-managed estate could increase the value of the property.

What is the problem with a freehold flat?

The legal problem is that there is no automatic system of making the liabilities to pay monies run automatically with freehold land – this means that within the building your freehold flat is situated you are reliant upon your neighbour to maintain part of the structure such as the roof mains walls or foundations and …

Are freehold flats worth more?

Freehold is often more expensive than leasehold at the outset. Similarly, freehold often applies to houses rather than flats, so they are naturally more expensive.

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Can I get a mortgage on a share of freehold flat?

Whether leasehold or share of freehold, it’s possible to mortgage a flat, just as you would a house. But there’s usually a few more considerations around making sure a flat is suitable for a mortgage and criteria will vary from lender to lender.

Do freeholders have to pay service charges?

If you’re a freehold homeowner living on a private estate, you may be expected to pay service charges for the upkeep of the communal areas. Even though you might share the estate with leaseholders, you unfortunately don’t share the same rights when it comes to what you pay.