Commonhold and share of freehold

What does it mean to hold a share of freehold? Does having a share of freehold give you more control? What is the ownership of a freehold? If you own a flat , you may also own a share of the freehold of the building containing your flat.

If you do not already own a share of the freehol you may be able to get together with other leaseholders to buy the freehold.

This is called leasehold enfranchisement or collective enfranchisement. The change allows leaseholders to dispense with their landlord and obtain a share of the freehold. Put simply, a freehold is the common ownership of property or lan and all immovable structures attached to such land.

The terms freehol leasehold and commonhold describe the three common forms of property ownership that exist in England and Wales. In Scotlan Scottish law has its own version of freehold property which is known as “ feuhold ”, and while there are some leasehold properties north of the border it is much less common than in England and Wales. It is an alternative to the long leasehold system.

Commonhold is a new type of property ownership.

Unlike leasehold , there is no limit on how long you can own the property for. A flying Freehold is the part of the freehold property which overhangs land which does not form part of that property freehold. A common example of a flying freehold is a room situated above a shared passageway in a semi-detached house , or a balcony which extends over a neighbouring property. A share of freehold is pretty much what you would imagine it to be, but there are a couple of different ways in which it can be set up. The first is where the freehold is split jointly between a number of flat owners within the property and the freehold is held in their personal names.

Most people are familiar with the terms freehold and Leasehold. Buyers tend to prefer freehold interests as a lease does not last forever (typically years) and , as such, is seen as a depreciating asset. There are two basic set ups for the ownership of the freehold , the first is that the freehold is owned jointly by a number (up to four) of the flat owners in their personal names and the second is where a company is the owner of the freehold and each of the tenants hold a share or membership in that company.

It’s well known that people prefer freehold ownership. Although leases should last a lifetime or more, you have less control, plus there’s something unnerving about your home being held on a lease that will ultimately vanish, albeit extremely slowly, unless extended – which can, of course, prove expensive. They are responsible for insuring and maintaining the building. The Law Commission wants to move over to a new system, called commonhol where people own the freehold of their individual flat. They then manage the maintenance of the building jointly, or appoint a building manager.

They won’t have to pay any ground rent and will have more control about how their building is run. However, fewer than commonhold developments have been.

When you own a share of freehold flat, both the leasehold and the freehold elements are important. You, in effect, have two roles. The freeholder of a property owns it outright, including the land it’s built on.

If you buy a freehol you’re responsible for maintaining your property and lan so you’ll need to budget for these costs. Most houses are freehold but some might be leasehold – usually through shared-ownership schemes. Buying a share of the freehold if you live in a flat. Whether buying a share of the freehold will cost more than extending your lease depends largely on your building.

For example, if it has a basement or loft space that could be developed (thus adding value to the property), then it could be prohibitively expensive to buy your freehold.