What is Share of Freehold?
Share of freehold is a type of property ownership that grants owners greater control over their property. It's an alternative to leasehold, which is a more common type of property ownership in the UK. In a share of freehold ownership structure, owners jointly own the freehold of the property, rather than owning it individually.
How Does Share of Freehold Work?
Share of freehold works by granting owners joint ownership of the freehold of the property. This means that owners have greater control over the property, including the ability to make changes or improvements without having to seek permission from a landlord or management company.
What are the Benefits of Share of Freehold?
There are several benefits to owning a share of freehold, including:
Greater control: As a joint owner of the freehold, you have more say in the management and upkeep of the property.
Lower costs: Share of freehold ownership can be more cost-effective in the long term, as you won't have to pay ground rent or service charges to a landlord or management company.
More flexibility: You have greater flexibility to make changes or improvements to your property without having to seek permission.
What are the Drawbacks of Share of Freehold?
While there are many benefits to share of freehold ownership, there are also some potential drawbacks to consider. These include:
Greater responsibility: As a joint owner of the freehold, you'll also have greater responsibility for the upkeep and maintenance of the property.
More complex ownership structure: Share of freehold ownership can be more complex than leasehold, so it's important to have a good understanding of your rights and responsibilities as an owner.
Potential disputes: Joint ownership can lead to disputes between owners, particularly if there are disagreements about how the property should be managed or maintained.
How to Obtain a Share of Freehold?
Obtaining a share of freehold can be a complex process that involves legal and financial considerations. In general, the process involves:
Establishing the value of the freehold: This can involve obtaining a professional valuation of the property.
Agreeing on terms with other owners: All owners will need to agree on the terms of the share of freehold ownership, including how costs will be split and how decisions will be made.
Forming a company: In most cases, owners will need to form a company to hold the freehold of the property. Discover how to start a business on the Companies House website.
Transferring ownership: Once the share of freehold has been established, ownership can be transferred from the landlord or management company to the newly formed company.
If you are unsure who your freehold landlord is, at Land Registry Online, we offer a Title Register service that allows you to easily obtain this information. Simply select the desired documents, complete your details, and you will receive your documents by email within a few hours.
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