You may have heard about having a share of freehold, which is similar to commonhold and can be bought from the landlord, as long as half of the leaseholders also agree to buy a share. It allows the freeholder to divide up their responsibility and makes the leaseholders directors of their leasehold company.
What is the difference between commonhold and share of freehold?
For example, in the case of a block of flats under a Commonhold the individual units would remain Leasehold in the usual way. The difference is that the Freehold would be owned outright by the Leaseholders as a collective group, each would have an equal share of the Freehold.
What does share of freehold mean?
Whilst you will also have a share in the freehold, what you actually own is a share in the company that owns the freehold – this means that you own it together with all the other leasehold owners (usually). When you come to sell, your buyer will be buying your leasehold title from you and your share in the freehold.
Is shared ownership commonhold?
Shared ownership leases will also be workable within commonhold, which is important given our aim of ensuring that commonhold can be used as the preferred alternative to leasehold ownership of flats.
What is commonhold property UK?
Commonhold is a method of ownership of the freehold in a building or an estate. A freehold estate is divided into “units” and “common parts”. The units are typically a flat and owned by a “unit holder” and the common parts, which may include stairways, lifts and outdoor spaces, are owned by a “commonhold association”.
What are the types of freehold?
There are three types of freehold estate:
- Fee simple absolute. This is the most common definition used to define the clear absolute ownership of a real property. …
- Fee simple defeasible. In this case, while the owner still has a claim on the land, he or she must only use it in the way it is intended. …
- Life estate.
What is reverse freehold?
‘A brief and simple explanation of reverse freehold is, If a housed is split into two flats the top flat would own the freehold to the bottom flat and vice versa, a lease is then in place for the individual flats to lease from each other, this legally protects the owners for any works that are required on the whole …
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.
How do I transfer share of freehold?
How do I transfer share of freehold? If you own a share of freehold for your property, you will need a formal deed in order to transfer ownership. This deed will transfer ownership from yourself and the other co-owners of the freehold, over to the new owner of your property and all the other co-owners.
Does freehold mean you own the land?
The freeholder of a property owns it outright, including the land it’s built on. If you buy a freehold, you’re responsible for maintaining your property and land, so you’ll need to budget for these costs. Most houses are freehold but some might be leasehold – usually through shared-ownership schemes.
Is shared ownership worth it?
Shared ownership is a great way to get a stake in a property when you can’t afford or can’t borrow enough to buy outright on the open market. There are however common complaints from people in shared ownership schemes.
Are shared ownership properties hard to sell?
And according to Ms Nettleton, selling a shared ownership property isn’t as hard as people have been led to believe. … “Normally, there is a nomination period where the home is offered to other shared ownership buyers first, but, if one can’t be found it can then be sold on the open market.”
Can a shared ownership property be freehold?
All homes purchased through Shared Ownership are leasehold, which means that you own the property, but the land upon which the property is built is owned by the freeholder. … In most cases, once you’ve purchased outright (a 100% share) we can make it a freehold for you.