Why you should think twice before buying a Share of Freehold!

So many buyer’s I have dealt with over the last 20 years need, must have, require a SHARE OF FREEHOLD to even consider buying a flat from us. If the flat is just ‘Leasehold’…it’s an automatic deal breaker!

Why is this? Well, the leasehold system is foreign to most buyers…particularly if they originate from foreign lands where the concept of buying a ‘lease for 90 years’ and spending all our hard-earned salary / inheritance on just a time share in a property is out of the question ! It is actually ridiculous when you think about it…but : It is, what it is in the UK.

Well, here’s the truth. I am lucky enough to own 5 properties. None of these have a Share of Freehold . Frankly, I prefer it that way.

Why is this? Well, I work in the industry and tlc manage well over 200 buildings in the area and I have sold well over 500 properties in my time, and more often than not, properties with a Share of Freehold are not what the label says on the tin.

Being a Shared Freeholder means you must give good deal of personal time, energy, stress and of course money to a building and more onerously: the people within it. You have to agree with people on service charge budgets, major works programmes, leasehold disputes and licences. You can separate yourselves somewhat from the ‘day to day’ maintenance by instructing an agent like tlc but there is still a good deal of personal involvement especially at Annual General Meetings (AGMs) and when there is any of work happening inside someone’s flat or to the communal parts of a building.

On top of your day jobs, family life and any time you have left for sport and social activities after that…taking time to deal with building issues can be an enormous burden and sometimes a never-ending nightmare.

On the other hand, just buying a lease in a building (no matter how long) cuts out the community you actually have to ‘play house’ with. An external freeholder / managing agent sends you bills to pay, notices regarding works to deal with, in essence completely alienating you from having to be personable with your fellow Freeholders.

Of course, there are many instances of Shared Freehold buildings working well, harmoniously together. No fisty cuffs in sight! Generally speaking, the larger the Freehold building (like mansion blocks) are less likely to embroil you into personal issues as opposed to small Victorian Conversions with 2-7 flats in.

However, please, please, please (if you have read this far) give Leasehold flats without a Share of Freehold a chance in the future. Someone wise once said: Never Judge a Book by its Cover…. this is never truer than the book called ‘Share of Freehold’.

For further tips on leasehold purchasing and in fact, extending your lease, please give Toby Brown a call anytime on 07736345776 or email at toby.brown@tlclondon.com