Non-motoring > Share of Freehold and Lease Legal Questions
Thread Author: zippy Replies: 6

 Share of Freehold and Lease - Terry
The UK splits ownership of blocks of flats between the individual flats owned by the leaseholder, and the block as a whole owned by a separate company.

Some aspects of this have come in for a lot of criticism recently but most leases define those parts of the building which are the responsibility of individual flat owners - basically inside.

The responsibility of the freeholder is typically external maintenance, roofs, repairs, grounds maintenance, block insurance etc. These are paid for through a service charge levelled on all flat owners - usually equal amounts or flexed depending on the size of the flats.

There is often also a ground rent payable to the owner of the block freehold.

The original rationale for separating the freehold from individual leases was that the freeholder could ensure that each flat met its obigations under the lease - paid their share of service charge, no loud music, no pets, etc etc.

Increasingly ownership of the freehold is seen as just an income stream for an investor, and freeholds are traded as other property. Many are purchased by leaseholders in blocks of flats - it gives them the right to extend leases which may originally have been 99 years, change the terms of the lease, and the ground rent is no longer payable.

You need to read the lease very carefully - I once was part way through the purchase of a buy to let flat. Only on reading the lease carefully was it apparent that the flat could not be sublet!!
 Messages Author Date
 Share of Freehold and Lease new zippy 17 Aug 21 12:40
 Share of Freehold and Lease new Manatee 17 Aug 21 13:16
 Share of Freehold and Lease new Terry 17 Aug 21 17:01
 Share of Freehold and Lease new zippy 18 Aug 21 01:03
 Share of Freehold and Lease new Netsur 18 Aug 21 14:36
 Share of Freehold and Lease new Terry 18 Aug 21 16:08
 Share of Freehold and Lease new Manatee 18 Aug 21 19:13
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