- What is the problem with a freehold flat?
- What does cross lease freehold mean?
- How do you value a freehold?
- What happens when a lease runs out on a property you own?
- Can I get a mortgage on a share of freehold flat?
- Can a freeholder refuse to extend a lease?
- Do freehold properties have a lease?
- Can I sell my share of freehold?
- Is it worth buying share of freehold?
- Why does share of freehold have a lease?
- Is share of freehold a leasehold?
- How do I transfer share of freehold?
- How do I extend my lease with share of freehold?
- Is a 999 year lease as good as freehold?
- Do you pay service charge on share of freehold?
- How much value does share of freehold add?
- How much can a freeholder charge to extend a lease?
What is the problem with a freehold flat?
The legal problem is that there is no automatic system of making the liabilities to pay monies run automatically with freehold land – this means that within the building your freehold flat is situated you are reliant upon your neighbour to maintain part of the structure such as the roof mains walls or foundations and ….
What does cross lease freehold mean?
Cross-lease (flats or household units) ownership involves a part but undivided share in the freehold title, along with a lease over a particular dwelling. … a long-term lease, from all four of the tenants-in-common (including you), for your particular flat.
How do you value a freehold?
The valuation of a freehold of a block of flats with long leases is based on the investment value. Multiply the ground rent figure by the year’s purchase. This is calculated by the valuer or more usually taken from the valuation table.
What happens when a lease runs out on a property you own?
Once the lease expires, the property reverts ‘back’ to being a freehold property, where both the building and the land it is on are under the ownership of the freeholder. … Buying a freehold property means that you’re the owner of both the building and the land it stands on.
Can I get a mortgage on a share of freehold flat?
As only certain lenders will lend on a share of freehold flat, you may be required to take out a specialist mortgage. This means a lender may give you slightly different conditions to those of a standard residential mortgage, or demand a higher deposit or interest rate.
Can a freeholder refuse to extend a lease?
When buying a leasehold property, its value will depend on how many years are left on the lease. … If you have occupied the property for less than 2 years, the freeholder can refuse to extend the lease, but it is often possible to negotiate a lease extension even so, although you may have to pay more to do so.
Do freehold properties have a lease?
Freehold: Outright ownership of the property and land on which it stands. A freehold estate in land (as opposed to a leasehold) is where the owner of the land has no time limit to his period of ownership. Lease lengths vary and most common are 99, 125 (in the case of ex local authority) 500 and 999.
Can I sell my share of freehold?
Many freeholders may not be aware but under the Leasehold Reform, Housing and Urban Development Act 1993, leaseholders are legally entitled to purchase the freehold of their building. This is known as Collective Enfranchisement and effectively means that tenants can force the sale of your freehold at any time.
Is it worth buying share of freehold?
If you already had a decent length lease, eg, 999 or 99 years, buying a share of freehold will make little profit. You would still have to pay the same legal costs as someone with a short lease, but would only add a smidge to the flat’s value. Do ask estate agents, solicitors and surveyors how much value it could add.
Why does share of freehold have a lease?
When you have a share of freehold property, the lease is very important if you wish to take out a mortgage on the property. The lender will require the flat to be defined and have its own title so that their charge can be registered against the property’s title.
Is share of freehold a leasehold?
A: Buying a share of freehold means that you will acquire a shared ownership of the freehold title relating to the building, as well as a leasehold interest in the individual flat. … Owning a share of the freehold also means that the lessees can have greater control of the day-to-day management of the building.
How do I transfer share of freehold?
Contact the other registered owners If you are one of the registered owners of the freehold, there must be a formal deed to transfer ownership. This deed transfers ownership from all the existing owners (including yourself) to your buyer and the remaining existing owners.
How do I extend my lease with share of freehold?
If you are lucky enough to own a flat and a share of the freehold the good news is that the process of extending is relatively straightforward and the costs are fixed (and low). The first step is to agree this with the co-owners. You cannot usually act alone however extending the lease will benefit everyone.
Is a 999 year lease as good as freehold?
Newly-created leases can be anything from 99 or 125 years to 999 years. 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). However, shorter leases become problematic sooner than you may think.
Do you pay service charge on share of freehold?
The share of your Freehold – Your Lease Without the lease, you would lose the covenants in it which allow you as freeholders to do such things as collect service charges. Ownership of the freehold does not affect the validity of the leases which will remain in place. You will be a joint freeholder AND a leaseholder.
How much value does share of freehold add?
For these reasons, buying the freehold may increase its value – by as much as 10 per cent according to estate agents – and make it easier to sell your home in the future. “Freeholders have more control over the management of their homes,” says a spokesman for the housing charity Shelter.
How much can a freeholder charge to extend a lease?
Typical cost to extend lease on £200,000 flat by 90 years. Typical cost to add 90 years to a lease, cost based on Leasehold Advisory Service data. Costs are per flat and can vary dramatically. Based on a £200,000 flat (£200,000 is its value with 999 year lease) with £200 annual ground rent.