What Emphasis Should Be given To Share of Freefold

[Anon Private]

I have seen a number of flats.

Most are leasehold, but some are leasehold with a share of the freehold.

I am wondering what emphasis I should place on having a share of the freehold. There are a number of factors to consider, the flat itself, the location, and its position, but I am being increasingly influenced by a share of the freehold. Am I being over influenced, or is it crucial.

Let me know what you think.

 

[Anon Private]

Regarding larger blocks and share of the freehold. These buildings tend to be managed by a company and I believe that the residents are shareholders of the company.

Am I right in thinking that share of ownership is better than no ownership; and some control is better that none.

In other words, even for larger blocks of flats share of ownership is desirable

 

[realdeals]

Freeholds and leaseholds are in the news at the moment. Ideally a share of the freehold would be useful but there may be additional costs/liabilities. Check the details before you commit.

 

[Anon Private]

When I saw the flat the current owner said that the block was managed by a professional company, something (can't recall) properties. I believe that the cost are covered by the service charges; ground rent is negligible, and the block appears well maintained, as are the grounds. If a company is managing the building, why not opt for some ownership. The AGM would also give a chance for leaseholders to air their views and presumably any forms would do likewise. If a company is managing, I assume that the leaseholders would have no work to do as the management has been delegated.

What do you mean by additional costs. I believe that the company has a substantial reserve, obviously, any shortfall would be the responsibility of the leaseholders. I assume that insurance would cover liabilities.

How would you check the details. Obviously see the lease, but this is likely at the solicitor stage where discussions can take place. Agents appear not to have copies. I suppose that at the stage of making an offer a lease could be obtained from the Land Registry (guess). In England, I am not committed when I make an offer.