Buying Freehold of a Leasehold Property
If you own the freehold of your property, you own the building and the land on which it is built. Owning the freehold has its advantages: you can extend your lease to 999 years and also have control over the day to day management of the property and finances relating to the building.
Buying Freehold to Leasehold Properties
In contrast to a freehold property, if you purchase a leasehold you own the flat only for the duration laid out in the lease. This means, once the term of the lease ends, ownership of your property and land reverts to the landlord.
Under the law, you together with your fellow leaseholders are entitled to purchase the freehold from your landlord. If you own a flat, you can join with other flat residents to purchase the freehold, however, there are conditions that must be met. For example, two-thirds of the flats in the building must be let on long leases and at least 50% of the leaseholders must participate.
The cost of buying Freehold Financing
The calculation of the premium is a complex matter and a wide variety of conditions factor into how much buying the freehold will cost. It is essential to engage a specialist surveyor to help with this assessment. You will have to factor in additional fees, including the legal fees and valuation costs of the freeholder, which will be your responsibility.
Overall, it is vital to get your finances in order so that you can move quickly and meet the strict deadlines.