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Lease versus share of freehold

What is the meaning of share of freehold when a lease is 999 years?

Asked on Feb 25 2018, General in Weymouth | Report content

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  • To simplify a little, the freehold is the outright ownership of the land and whole building. The leasehold is the traditional structure to divide that building into apartments. It provides a sound legal basis to enforce obligations on both freeholder and leaseholder to maintain the whole building. The leaseholders may collectively own the freehold; usually by forming a management company in which they each of a share and the company owning the freehold. In such circumstances a 999 year lease may be granted thus avoiding any future problem of the need to extend a shortened lease.

    Answered on Feb 26 2018, Report content
  • In answer to your first query about why you still have a leasehold while also owning the block and the land it stands on, it's the law - odd though it may seem. According to the Leasehold Advisory Service, which publishes a free guide to leaseholding, current property law in England and Wales effectively requires that flats be leaseholds, even when sold with a share of the freehold. So even though you have this share you still each have to have a lease. Leases are typically granted for 99 or 125 years - the ultra-long 999-year leases you have seen are typically granted on new properties, which does not apply in your case. As for renegotiating the lease on a much longer term, there's no need - it would be like trying to negotiate buying something from yourself

    Answered on Feb 26 2018, Report content
  • Great responses here. A 999 lease is essentially the next best thing to owning the freehold so, providing your solicitor has correctly reviewed the documentation, you should have nothing to worry about.

    Answered on Feb 28 2018, Report content
  • A decent solicitor will explain the benefits and costs. Ideal situation is to own a flat with 999 year lease AND a share of the freehold so that you and other sharers of the freehold can organise the maintenance of the block or appoint a managing agent as you see fit. As a group of owners of flats you have a vested interest in making sure property is looked after (and properly insured for all major risks) - just have regular meetings to discuss issues. Usually someone needs to lake the lead and be a chairman of meetings. Collective payment of insurance, sinking fund for small repairs, Gardening, keeping Ltd company going, etc needed to be paid for.. Any errant leasholders who are not interested are the biggest pain to deal with do BEWARE.if you go this route. Best of luck.

    Answered on Jul 25 2018, Report content

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