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sixunforced

share of freehold - confused

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Not sure if this is the right place for this query but anyway, I'm a first time buyer and have been searching for a property for like two years now (not continuously but on and off and obv covid halted my search for a while). I found a really nice 2 bedroom flat for under £320,000 in a block of around 12 flats (I think) and my offer has been accepted, however the only issue that is concerning me is that it is a "share of freehold." From what I've read, overall this is a better option than an ordinary leasehold option as it gives you more control and autonomy about how the building is run etc. and also it slightly increases the overall value of the property, you can increase the length of lease plus it's easier to sell the property?

At the same time though I'm reading reports of people saying it can be good but only if the others involved play their part in the agreement. If they do not co-operate then this can cause issues?

So what is the verdict here really? Is share of freehold worth going for or should I stick with a leasehold flat (as most flats are leasehold)??

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Share of a freehold is generally good, much better than leasehold..  it just means all the property owners on that plot of land have a say in every thing that’s going on... so you are a the mercy of your neighbours as such I think,,, not ideal but much better than a distant company dishing out service charges Willy nilly... Just get great at interpersonal skills and you’ll have influence to your benefit ... probably....

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Hi sixunforced

Although you'll have a share of the freehold, I believe the property itself will still most likely have a lease on it meaning you'll still be a 'leaseholder'. The lease will outline the property/area you actually own and are responsible for, versus the common areas of the 'freehold' that you and the other 11 flats would need to maintain. You'll need to check how the block is being managed/maintained - e.g. building insurance, grounds maintenance, any sinking fund.

Be aware that some lenders won't lend against properties that are sold with a share of the freehold as sometimes they may not be managed properly.

For example, if someone owns 7 flats in that block of 12, they'll have majority share of the freehold. And if they're a lazy owner and not bothered to maintain it or complete repairs to common areas, then there's no much else you can do. 


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