What Does Share of Freehold Mean?

A share of freehold property means you not only own your leasehold flat but also a portion of the building’s freehold, giving you more control over maintenance, lease extensions, and management. Unlike a standard leasehold, this setup allows you to have a direct say in how the property is run, making it an attractive option for many homeowners.

In simple terms:

You Own Part of the Building – You own your flat and a share of the building’s freehold, meaning you co-own the land and structure with other flat owners instead of a landlord.
You Have More Control Over Decisions – You and other owners decide on maintenance, costs, and lease extensions.
Shared Costs & Responsibilities – All co-owners contribute to repairs, insurance, and upkeep.

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What Is Share of Freehold?

A share of freehold means you own the leasehold for your flat while also jointly owning the freehold for the building with other flat owners. This arrangement gives you greater control over decisions related to maintenance, lease extensions, and building management, as the freehold responsibilities are shared among co-owners rather than managed by an external landlord.

Is Share of Freehold the Same as Leasehold?

No, a share of freehold is not the same as a leasehold, though both are forms of property ownership. With a leasehold, you only own the right to live in the property for a fixed period, as outlined in your lease. In contrast, a share of freehold means you not only own your leasehold flat but also a portion of the building’s freehold and the land it’s on, giving you more control over decisions like maintenance, lease extensions, and management.

Benefits of Share of Freehold

Greater Control Over Property Management: Owning a share of freehold gives you a direct say in how the building is managed. You can influence decisions about maintenance, insurance, and communal areas, avoiding the limitations often faced by leaseholders under a landlord's control.
Cheaper and Longer Lease Extensions:As a share of freehold owner, you can extend your lease to up to 999 years, often at little or no cost. This avoids the expensive premiums that freeholders usually charge for lease extensions.
Lower Service Charges and Fairer Ground Rent: With collective freehold ownership, service charges and ground rent are more transparent and easier to manage. Co-freeholders have control over how funds are allocated, ensuring costs are fair and reasonable for everyone.
Increased Property Value: Share of freehold properties are often more valuable than standard leasehold properties. Buyers are typically willing to pay a premium for the added control, reduced costs, and longer lease terms.

Related Read: What is my property worth?

Drawbacks of Share of Freehold

Responsibility for Maintenance and Insurance:As a co-owner of the freehold, you’ll have a direct role in managing the building’s upkeep and arranging insurance. This can take up a lot of time and requires cooperation from all the freeholders to ensure everything is handled efficiently. It’s not just about splitting costs—it’s about actively making decisions together to keep the property in good shape.
Disputes Between Co-Freeholders: Shared ownership means all freeholders must agree upon decisions about repairs, costs, and other management issues. Disagreements can arise, particularly if one party isn’t cooperative or disputes shared responsibilities, leading to delays or strained relationships.
Additional Administrative Duties: Without a managing agent, freeholders are responsible for handling legal and administrative tasks, such as filing accounts and ensuring compliance with property laws. For those unfamiliar with these processes, it can be a steep learning curve and require extra effort to manage properly.

We’ve also helped sellers navigate the challenges of owning a share of freehold. Common concerns we hear include the time and effort needed to manage maintenance and the potential for disputes between co-freeholders, particularly when responsibilities aren’t clearly outlined.

How Does Share of Freehold Work?

A share of freehold works by giving flat owners joint ownership of the building’s freehold. This means you, along with other co-owners, share responsibility for managing the building’s maintenance, insurance, and any decisions related to its upkeep.

You can either manage these responsibilities collectively or appoint a managing agent to handle them on your behalf, as long as all co-owners agree. This setup allows more direct control over the property but requires collaboration and shared decision-making among the freeholders.

Many share of freehold owners face unique challenges when selling their property. Here’s how one homeowner described their experience with us:

"Absolutely brilliant company No hassle seamless from start to finish No hidden fees or contracts to sign Will definitely advise others to use them if they want a quick sale Thank you Raymond for everything"

Jane Douglas on Housebuyers4u

Click here to read the full Google review

Can I Buy the Freehold of My Leasehold Property?

Yes, you can buy the freehold of your leasehold property, but it usually requires at least 50% of the other leaseholders in your building to agree. This process, called collective enfranchisement, lets leaseholders jointly purchase the freehold and gain more control over the property. However, it can be a complex process with legal fees involved, so getting professional advice is highly recommended.

For example, The Leasehold Advisory Service estimates that the cost of purchasing a freehold can vary widely depending on the property, ranging from as little as £5,000 to £50,000 or more, with average costs around £15,000. This highlights the importance of budgeting thoroughly and understanding the financial commitment involved.

Is It Worth Buying a Share of Freehold Property?

A share of freehold offers clear perks like more control over building management, cheaper lease extensions, and fairer service charges. But it also means taking on responsibilities like maintenance and working with co-freeholders, which isn’t for everyone.

Whether it’s worth it comes down to your priorities. If you’re happy to get involved in managing the property, it could be a great option. But if you prefer less hassle, it might not suit you.

Expert Tip from Paul, Property Expert:

“From my experience, share of freehold works best for people who value control and are comfortable making decisions with others. It’s a fantastic option if you’re proactive about property management.”

Sell Your Share of Freehold Property Quickly with Us

Selling a share of freehold can be more complex than a standard leasehold, especially with co-freeholders and legalities. At Housebuyers4u, our Sell House Fast service offers a hassle-free, cash sale with completion in as little as seven days. No delays, no lengthy negotiations—just a smooth, stress-free process handled entirely by us.

Expert Tip from Paul, Property Expert:

Frequently Asked Questions

1Do I need to extend my lease if I have a share of freehold?

Yes, even with a share of freehold, you still own the leasehold for your property, which means it needs extending when it runs low. However, this process is typically simpler and far cheaper since co-freeholders often waive or reduce premiums.

2Who owns the loft/garden in a share of freehold Property?

Ownership of lofts, gardens, or other shared spaces depends on the terms of the lease agreement. Some leases allocate these areas to specific flats, while others designate them as communal spaces owned collectively by all freeholders.

3Is It harder to get a mortgage on a share of freehold property?

Securing a mortgage on a share of freehold property can sometimes be more complex, as lenders may see shared ownership responsibilities as a risk. Choosing a property with a long lease and a well-managed freehold often reassures lenders and improves your chances.

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