How to buy share of freehold

Buying share of freehold when selling? Hello I currently have my 2 bed victorian flat for sale in London. Its leasehold years. Its in a block of 2 and I have been offered to buy a share of leasehold with the flat upstairs. Is it worth doing this as I am selling? Upstairs has a short lease so they will buy all the freehold if I dont buy my share. Also ive heard its harder to sell a flat with share of freehold as appossed to leasehold due to getting a mortgage.

Is there any advantage to having share of freehold? T cannot sell or mortgage the share of freehold as such; but it is transferred to successor. But, generally, it's always better to have it than not to have it. Thanks, I have been offered to buy share of freehold with flat upstairs from the freeholder, there are only 2 of us, as I am selling is it worth purchasing share of freehold with upstairs as I still have years on lease?

How to extend your lease if you own a share of the freehold? | Kenneth Elliott & Rowe Solicitors

Some people have advised me not to bother, I am not sure whether this is a good opportunity or a rip off and will it effect saleability?

The value of the freehold is dependent on the leases. The shorter the lease the greater the value of the freehold.

Leasehold Advice Centre - Buy the Freehold - Collective Enfranchisement

It seems likely that a high percentage of the value of the freehold is due to the other flat having a short lease. Relatively little of the value of the freehold is due to your long lease.

The alternative would leave you as true equals. Then you could extend both leases to years for nothing and it would be 'fair'.

Sam Dunn: 'Should I buy the freehold to my flat?' | The Independent

That would be unfair on you. Is it harder to get mortgage on share of freehold? Your leasehold property is under a leasehold title with years on the lease and the sale of property to a future buyer is not a problem as the buyer will have no difficulty finding a mortgage.

Basically the leasehold title is a long term rental contract for years The freehold property is under a separate property title and title holder is the the owner of the land and building.

If this is held by an outside company or yourself jointly with the other flat owner , you would still be able to sell your leasehold flat. However when you offer to sell the "leasehold property" with a share of "freehold title" the freehold , you can assure the buyer there is no outside freeholder to cause problems or make extortionate demands for registering a transfer or mortgage charge.

Paying further fees to argue over the price would seem likely to be pointless and unprofitable. Are you prepared for the hassles of managing the freehold though admitedly these could be less than the hassles of dealing with a freeholder? Out of interest how much is the other leaseholder paying? This is why Im a bit concerned. What could be the hassles of dealing with the freehold or freeholder?

Buying Your Freehold | Leasehold Enfranchisement | ALEP

This applies to P too. To expand Jeffrey's point there are would be two property interests - 1 A long leasehold interest in a flat which is mortgageable. Better phrased as "A freehold owned jointly with the other leaseholder which is not mortgageable unless by both leaseholders, the joint freehold reversioners acting jointly as mortgagors". The problem is that a "pure" freehold flat i.

A lot of non-lawyers don't understand the difference between "freehold" and "shared freehold".

If you go in to a broker or a branch of a lender saying you want to buy a shared freehold flat they may not understand what is happening and get confused - they look up their book of rules and find they won't lend on freeholds and say "no".

In fact the vast majority will lend, it is just that the people you talk to don't understand their own rules.

So when you apply for a mortgage you tell them you are buying a flat. They may ask if it is leasehold - it will be so you say yes. Remember the lender is not taking any security over the freehold so it isn't really interested in that.

Don't get into talking about shared freehold - or put it to them another way: Then go to http: Richard Is this the reason why "Commonhold title" has not been widely accepted - because of lack of mortgage availability for flats with shared freehold under CML rules???

Second the main reasons nobody has bothered much with commonhold are that: It is just as complex as leasehold and solicitors are not used to it; 2. Many lenders won't lend on it; and 3. Most importantly, developers can make some extra money selling off the freeholds once a leasehold flat development is finished.

It is unlikely a flat would sell for more if it was commonhold because it would be too technical for most people to understand and so while they can get away with it developers are not using commonhold.

They can achieve virtually the same effect by granting year leases at a peppercorn ground rent and transferring the freehold after the last flat has been sold to a residents' management company - but few developers do this. As to your question on whether it would make a difference to a buyer - if I was looking to buy a leasehold flat at the moment, I would only consider them if there was a share of the freehold - I would absolutely not consider anything with a third party freeholder.

So if I was your potential buyer this would be an clear cut deal breaker. But P of a lease with a healthy unexpired term and the original developer as L would be OK. Most problems arise when: