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Underlying lease on share of freehold property

I have viewed a maisonette that I would like put an offer on but I am confused about its status. The agent has told me that the maisonette is share of freehold but there is an underlying lease of 95 years. What does this mean?

Asked on Feb 22 2017, General in London | Report content

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  • The lawyers/specialists on here would probably be able to explain it better but it essentially means that you will own a share of the freehold interest - usually by means of a shareholding within a company structure with the other owner(s). You would need to check who the underlying lease is managed by - sometimes all the owners get together and deal with all the issues, maintenance, repairs etc. - effectively owning/managing the lease themselves - or it may be with a separate organisation to which you will pay a leasehold fee to. The length you have left is ok, but you may want to try and negotiate the price down a bit - bearing in mind that you will have to pay for the extension over the next 15 years or so. I would suggest that you contact a suitably experienced solicitor to go through the paperwork as there may be some grey areas you will need clarification on before your make your offer. There is some good advice / contacts via the link below...

    Web reference: https://www.lease-advice.org/

    Answered on Feb 23 2017, Report content
  • I would suggest the Maisonette was originally sold on a long lease perhaps 99 or 125 years. At some stage the the leaseholders have bought the Freehold jointly so share the Freehold (share of), the lease stays in place for completeness but the fact it falls below what would be classed as short in years to come, as you own a share of the Freehold this won't be an issue.

    Answered on Feb 24 2017, Report content

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