When buying a share of freehold flat, you have some outright ownership over the property and its land. This ownership is shared with other people, possibly other leaseholders, hence why it is referred to as a ‘share’.
Having ownership rights grants you more control over how the block of flats is run. This, in a way, makes you your own landlord (or one of your landlords anyway).
To better understand what a share of freehold flat is, there are a number of key features we need to identify. These features host a wealth of benefits and opportunities.
We should point out that though these benefits do at first sound appealing, you should take your responsibility as a partial owner seriously. Share of freehold flat owners only reap the benefits of their situation if they are willing to engage with other co-owners. If not, a share of freehold may become challenging (but we will get to that later).
Benefits to consider are:
Further to your understanding of what is a share of freehold flat, there are also some potential challenges to consider.
Whilst we would like to think working as a collective will always be harmonious… We know all too well that this is not always the case. Some examples of potential challenges are:
Much like any situation wherein responsibility is shared, there can be disagreements over who is in charge of what. At home, you’re probably used to rows about who takes the bins out, who’s doing the dishes etc.
In this case, there are often disputes over who is responsible for covering the cost of necessary maintenance works, who oversees getting repairs actioned, what is a priority and so on. Such disagreements can lead to a breakdown in communication and can have a knock-on effect on how future issues are managed.
Differences in opinion may arise over alterations or renovations to the properties shared shared-spaced or individual flats. This is because what one freehold share owner sees as a good investment, another may see differently.
As a share of freehold owner, you must strike a balance between personal preference and the collective interest of the building’s tenants.
It is rare that every co-owner is in the exact same financial position. Managing finances fairly and in a way that suits everyone can be hard to manage in any circumstance.
Where financial tensions arise, there may also be disagreements regarding appropriate insurance plans. Again, this should be a collective responsibility, but it is common for disputes to arise over the named insurer, coverage limits and premium payments.
In any case, it is wise to have an action plan in place should an emergency occur.
Should structural damage or a burst pipe threaten the building, it’d be the worst possible time for co-owners to not be on the same page. In these circumstances, immediate action is required. Nonetheless, when under high pressure, mutual agreements tend to be harder to achieve.
We hope you now have a better understanding of what is a share of freehold flat.
At Blacks Legal, our team of residential property solicitors have 30 years of experience and have truly seen it all. We have the expertise to swiftly deal with whatever your issue might be.
If you seek qualified and thorough legal advice, please get in touch today. Our dedicated team will endeavour to get back to you as soon as possible.