What Is a Share of Freehold?
A share of freehold refers to a property ownership structure where the leaseholders of a building also own a portion of the freehold.
Typically, this arrangement applies to flats within converted houses or apartment blocks. Instead of one individual or company owning the freehold, the flat owners collectively own the freehold, either through a company or as joint owners. But what does this really mean, and what should you consider?
When you own a share of freehold, you still hold a lease on your individual flat, but you also have an interest in the building’s freehold. This gives you greater control over how the building is managed, including decisions about maintenance, service charges, and lease extensions.
One key point to clarify with your solicitor is who is responsible for different parts of the building. For instance, do individual leaseholders manage their own windows and doors, or does the freehold group manage the entire building’s upkeep, including external repairs? In some cases, each owner may be responsible for their own portion, while in others, the entire building is managed as a collective.
It’s also important to determine whether the property has a management company or a Right to Manage (RTM) company. In some share of freehold arrangements, a management company is set up to oversee the building’s maintenance, while in others, the leaseholders manage the building themselves through an RTM company. Alternatively, a registered building management company may be appointed to handle all aspects of maintenance and service charges on behalf of the freeholders.
At Tollington Surveyors, we are members of the Property Institute and are well-versed in property management and overseeing freeholder assets. Our expertise ensures that the management of your building is handled professionally, protecting your investment and maintaining the property's condition. Whether the property is self-managed or overseen by a professional management company, our understanding of freeholder responsibilities ensures that all assets are properly maintained.
Understanding these specifics is essential, as your level of responsibility and financial contribution toward maintenance may vary depending on the terms of your share. Always check with your solicitor to understand the exact responsibilities and legalities involved before purchasing a property with a share of freehold.
Tollington Surveyors is a small, locally-focused surveying company based in Stroud Green, and dedicated to serving the Haringey area. Learn more >
