Some of the main reason you might want to buy the freehold of your property .

 

 

 

1.       If you come to selling the property it could make the process smoother

2.       When you own a leasehold property it does come with conditions in a lot of circumstances, this can include no pets to be kept in the property, or very small alterations that don’t need council permission might need freeholder permission to alter.

3.       When selling if you have the freehold it can make the property more valuable and attractive.

4.       You can obtain a long lease as you won’t need to negotiate with the freeholder the leasehold extension prices.

5.       No yearly ground rent to pay.

6.       No need for a management company if you are the freeholder.

7.       Maintenance costs are decided by the freeholders.

8.       Service charges could be reduced.

These reasons backed by the legislation which can be enforced via a formal process at first-tier tribunal make purchasing the freehold of property an increasingly attractive option for home owners.

With a flat if you are the freeholder, you will need to set up a freehold company ,this is to manage the accounts  that include the costs of running the property under the freehold , you will need to make sure suitable buildings insurance is in place and make sure all communal areas are fully up kept.  This can be done by employing your own maintenance staff, using local companies or contracting with a management company to look after all the upkeep and schedule upgrades and repairs to the communal areas including things like the roof etc .All the costs of running the freehold will be passed on to the leaseholders by way of a service charge that is split between all the leaseholders under the freehold.

If you come to sell the property, the process can be made smoother as getting the management pack filled in for the solicitor will be easier and providing service charge and ground rent receipts will be easy. Also the property is more attractive for sale if the freehold is offered at the same time .

There are some important responsibilities that come with owning the freehold, but many consider that the advantages far outweigh any draw backs.