TRC is primarily funded by ad revenue. If you like the content you find here, don't block the ads check them out instead. Thank you.
Results 1 to 11 of 11

Thread: Freehold ... but with a 125 lease! Property people

  1. #1
    Should Get Out More the phantom pieman's Avatar
    Join Date
    Jan 2008
    Location
    Brighton-ish
    Posts
    10,788
    Like
    1,472
    Liked 1,066 in 709 posts
    Blog Entries
    1

    Default Freehold ... but with a 125 lease! Property people


    TRC is primarily funded by ad revenue. If you like
    the content you find here, don't block the ads check
    them out instead. Thank you.
    I have just been to see a flat in which you have a share of the freehold. But then there is a 125 lease ....
    Surely a property is either freehold or leasehold ... or is it that the management company of the freeholders own the rights to extend the lease ...?

  2. #2
    Should Get Out More Julian_Boolean's Avatar
    Join Date
    Jan 2008
    Location
    1985
    Posts
    14,234
    Like
    904
    Liked 2,646 in 1,584 posts

    Default Re: Freehold ... but with a 125 lease! Property people

    I used to own a flat that was lease hold but I silo owned a share of the free hold, when you bought the flat you automatically became a director of the management company which owned the free hold.

    It was never any problem for me, but as a company director you are responsible for tax returns etc.

    Sent from my SM-T560 using Tapatalk

  3. The following user liked this post made by Julian_Boolean:


  4. #3
    Should Get Out More
    Join Date
    Dec 2007
    Location
    Lahndahn innit
    Posts
    10,872
    Like
    112
    Liked 434 in 327 posts
    Blog Entries
    4

    Default Re: Freehold ... but with a 125 lease! Property people

    Quote Originally Posted by the phantom pieman View Post
    I have just been to see a flat in which you have a share of the freehold. But then there is a 125 lease ....
    Surely a property is either freehold or leasehold ... or is it that the management company of the freeholders own the rights to extend the lease ...?
    Owning a share of the freehold and 125lease are two different things.

    All it means is that getting a lease extension should be easier.

  5. #4
    Should Get Out More the phantom pieman's Avatar
    Join Date
    Jan 2008
    Location
    Brighton-ish
    Posts
    10,788
    Like
    1,472
    Liked 1,066 in 709 posts
    Blog Entries
    1

    Default Re: Freehold ... but with a 125 lease! Property people

    Quote Originally Posted by katana View Post
    Owning a share of the freehold and 125lease are two different things.

    All it means is that getting a lease extension should be easier.
    So the 125yr lease applies to what?
    and the extension of that is up to the 4 people who then share the freehold?

  6. #5
    Should Get Out More
    Join Date
    Dec 2007
    Location
    Lahndahn innit
    Posts
    10,872
    Like
    112
    Liked 434 in 327 posts
    Blog Entries
    4

    Default Re: Freehold ... but with a 125 lease! Property people

    Quote Originally Posted by the phantom pieman View Post
    So the 125yr lease applies to what?
    and the extension of that is up to the 4 people who then share the freehold?
    Ownership of the flat, the extension is something that has a legal framework, so the valuation price might well be in your favour.

  7. The following user liked this post made by katana:


  8. #6
    Should Get Out More the phantom pieman's Avatar
    Join Date
    Jan 2008
    Location
    Brighton-ish
    Posts
    10,788
    Like
    1,472
    Liked 1,066 in 709 posts
    Blog Entries
    1

    Default Re: Freehold ... but with a 125 lease! Property people

    Quote Originally Posted by katana View Post
    Ownership of the flat, the extension is something that has a legal framework, so the valuation price might well be in your favour.
    so I am being thick here , what does the freehold / share of freehold then apply to?
    (always owned freehold properties)

  9. #7
    Should Get Out More
    Join Date
    Jan 2008
    Location
    Down in the Duchy (at last)
    Posts
    15,751
    Like
    4,202
    Liked 2,468 in 1,678 posts

    Default Re: Freehold ... but with a 125 lease! Property people

    You own the leasehold.

    Property company (of which you own 1/4) own the freehold.

  10. The following user liked this post made by Cousin Jack:


  11. #8
    At Work Greenzeph's Avatar
    Join Date
    Mar 2008
    Location
    on another planet
    Posts
    1,520
    Like
    186
    Liked 289 in 109 posts

    Default Re: Freehold ... but with a 125 lease! Property people

    Flats are ALWAYS Leasehold.
    If you have a pile of flats on top of each other they cannot individually all own the freehold. literally the land..
    Some flats have clubbed together and collectively bought the freehold. So by default when you buy your flat which will be leasehold you get a share of the freehold.
    The advantage is you are your own freeholders so no ground rent or extortionate fees to renew the lease. There are other advantages as well as you can choose to put your own management company in place.
    If an agent has described the flat as Freehold that is incorrect.. it should real Leasehold with a share of Freehold.. or collective freehold.

  12. #9
    Not Much To Do Craigyboy9's Avatar
    Join Date
    Mar 2013
    Location
    Scotland
    Posts
    694
    Like
    45
    Liked 199 in 113 posts

    Default Re: Freehold ... but with a 125 lease! Property people

    Iím glad we donít have this in Scotland. Sounds like a total minefield!

  13. #10
    Should Get Out More Bobzilla's Avatar
    Join Date
    Apr 2008
    Location
    Wigan :(
    Posts
    10,902
    Like
    2,145
    Liked 1,116 in 736 posts
    Blog Entries
    7

    Default Re: Freehold ... but with a 125 lease! Property people

    Quote Originally Posted by Greenzeph View Post
    Flats are ALWAYS Leasehold.
    If you have a pile of flats on top of each other they cannot individually all own the freehold. literally the land..
    Not technically true. It is deeply impractical, and can lead to problems in the future (vis a vis damage to one flat affecting others), but it is entirely possible. I believe that lots of the flats in Lincoln's Inn are flying freehold.

    Quote Originally Posted by Greenzeph View Post
    Some flats have clubbed together and collectively bought the freehold. So by default when you buy your flat which will be leasehold you get a share of the freehold.
    The advantage is you are your own freeholders so no ground rent or extortionate fees to renew the lease. There are other advantages as well as you can choose to put your own management company in place.
    If an agent has described the flat as Freehold that is incorrect.. it should real Leasehold with a share of Freehold.. or collective freehold.
    It is often not true share of freehold. It is often a limited company owning the overall property where all of the shareholders are homeowners. So it is leasehold with share in the freehold owning company.

  14. #11
    Should Get Out More Julian_Boolean's Avatar
    Join Date
    Jan 2008
    Location
    1985
    Posts
    14,234
    Like
    904
    Liked 2,646 in 1,584 posts

    Default Re: Freehold ... but with a 125 lease! Property people

    Quote Originally Posted by Bobzilla View Post
    It is often not true share of freehold. It is often a limited company owning the overall property where all of the shareholders are homeowners. So it is leasehold with share in the freehold owning company.
    That's how I owned my flat.

Go Back to Forum My Forum

TRC Affiliates - Help TRC make a small amount of commission