Freehold - to buy or not to buy

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    Freehold - to buy or not to buy

    Hello all,

    I own a ground floor maisonnette and have been offered the freehold. I am seriously considering buying it, but wanted to check if anyone can advise if this is a good move or not.

    There is one other flat above mine.

    If I went ahead, is it better to buy with the upstairs owner or on my own? What if the upstairs owner isn't interested?

    Really look forward to some advice.

    regards

    #2
    Your property is held under leasehold title and your lease is only a long term rental agreement. Buying the freehold title means becoming owner of the building and land.

    Is the offer of freehold been offered to both flats ? If So, try to buy it jointly with the other flat if you can. If other flat owner is not willing to buy , then buy it yourself if you can fund the purchase. Ususally this offer arises when the freeholder has received an offer to buy from an outside buyer.

    Comment


      #3
      Thank you Gordon. I don't know if the upstairs leaseholder has been approached also. The Freeholder mentioned it in passing to gauge interest I suppose. I would like to buy it, but was worried that there might be underlying issues with owning the freehold to consider.

      I have asked him how much he wants for it and if I can afford it, will go ahead.

      Thank you very much for the response.

      Comment


        #4
        The key thing is that as freeholder you are responsible for the building and its repair maintenance and insurance. You therefore need to ensure that the other leaseholders lease provides for the recovery of all those costs on a sensible basis and that you are not left with large bills or liabilities.

        There are considerable legal obligations and hoops which you also need to be aware of.
        Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

        Comment


          #5
          Originally posted by leaseholdanswers View Post
          The key thing is that as freeholder you are responsible for the building and its repair maintenance and insurance. You therefore need to ensure that the other leaseholders lease provides for the recovery of all those costs on a sensible basis and that you are not left with large bills or liabilities.

          There are considerable legal obligations and hoops which you also need to be aware of.

          That's what I'm worried about, though I have never had to call on the freeholder for anything relating to repairs or insurance etc., I have always organised those personally. My only contact with him is to pay ground rent which he rarely asks for anyway.

          If he has never had those obligations in the past, is there a chance I could buy the freehold and suddenly find that I now have that responsibility?

          Much appreciate your input.

          Comment


            #6
            Yes there is every chance, but to answer the question you need to imagine that you are responsible for the entire building except where two leases say otherwise and if and where they say to contribute towards your costs.

            You might find that the leases, as they often do in one up one downs, split the property horizontally each taking care of their own half.

            However they may not have a good structure for dealing with anything shared eg drains rainwater goods chimneys etc or where the other is inclined to look after theirs.

            It's time to get both copies of the leases and have them reviewed before committing to a purchase.
            Based on the information posted, I offer my thoughts.Any action you then take is your liability. While commending individual effort, there is no substitute for a thorough review of documents and facts by paid for professional advisers.

            Comment


              #7
              Thank you LH, I will do that before making a decision.

              Comment

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