In addition to having more control regarding management and maintenance of the building, a share of freehold offers other advantages. This includes extending the lease to 999 years for no premium and reducing the ground rent to a peppercorn (so in effect you do not pay ground rent).
Do you pay service charge on share of freehold?
The advantage of owning freehold property, or having a share in the freehold of a property, is that you are either totally in control, or have a vote in what happens with the building, and in the latter case any repairs or service charges.
What is ground rent on a freehold property?
As a legal term, ground rent specifically refers to regular payments made by a holder of a leasehold property to the freeholder or a superior leaseholder, as required under a lease. … In this sense, a ground rent is created when a freehold piece of land is sold on a long lease or leases.
Does freehold mean no ground rent?
What is freehold? When you buy a freehold property, you become the sole owner of both the building and the land it stands on. As a freeholder, you won’t need to pay ground rent, service charges or permission fees, but you will be responsible for the maintenance of the building.
Is share of freehold a good thing?
Are there any benefits to having a share of freehold? In short, yes. Having a share of freehold gives you greater control over things such as maintenance obligations which removes the possibility of being taken for a ride by an unscrupulous landlord.
Is share of freehold better than leasehold?
Is share of freehold better than leasehold? Share of leasehold is better than freehold if you are unhappy with how your building is being run. It can also be cheaper to renew leases on leasehold properties once you have control of the freehold.
What happens if you don’t pay service charge?
If you can’t pay your service charge, or you’ve fallen into arrears, you should contact the landlord or management company of your property to discuss your options for repaying the arrears. If you don’t take steps to deal with the arrears, the freeholder could take court action and you could lose your home.
Can a freeholder refuse to sell the freehold?
Can a freeholder refuse to sell the freehold? A freeholder can only refuse to sell the freehold if the qualifying requirements are not met. For example, leaseholders may ask if you will sell the freehold to them even if more than 50% of the leaseholders do not wish to participate.
Can I buy out my ground rent?
Ground rent is an amount for the land your home is built on. … The landowner is also known as the freeholder or rent owner. You can apply to Land Registry to buy out the ground rent.
Will ground rent be abolished?
It was announced in the Queen’s speech last week that ground rents for new leasehold properties will be abolished, with a small sum in rent taking their place.
Is a 999 year lease as good as freehold?
A 999 year lease is effectively as good as freehold, and there can even be some advantages to owning some properties this way, rather than under freehold (see below). … If a lease has less than 80 years left to run, it may make the property hard to sell, and it may even be difficult to remortgage.
What is the benefit of owning a freehold?
Freeholds are usually houses. The advantage of a freehold property is that you have complete control over it, and are not subject to any further payments, like ground rents, service charges or admin fees, which can be the case with leasehold properties.
How long does a freehold last?
In a nutshell, they mean the following… Freehold: Someone who owns the freehold of a property owns the property and the land it stands on, for an unlimited period. Interestingly, the Civil Aviation Act 1982 means you’ll also ‘own’ and have rights to the ‘airspace’ above your property up to about 500 feet.