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Transparent pricing, from start to finishGet the support you need, when you need itTrusted lawyers, clear expectations
Amazing experience
After placing an enquiry, I received a call 20 minutes later, and then 2 hours later, I had a solicitor assigned to me. They were absolutely incredible right from the word go - amazing and very prompt with replies, answering all my questions and keeping the process moving. We finally completed today and I am so unbelievably happy. I wouldn’t hesitate to use Lawhive again in the future if needed.
Lily
First class service
I initially made an online enquiry about a tricky conveyancing matter and received an immediate call back. They understood straight away what was needed and gave me a quote that was very reasonable. It was such a pleasure to find someone who was cheerful, professional and completely reassuring as I’d been getting quite anxious about the sale of my house. The service Lawhive has provided is absolutely first class and I cannot recommend them enough.
Charles
Empathetic, professional and efficient
I am an executor, selling my mother's home. I found the assistance I received from Lawhive first rate - empathetic, professional and efficient.
Mark
Great service from Lawhive
We used Lawhive for our conveyancing needs and our solicitor was very helpful, patient and informative. She helped us with our needs with prompt responses and provided a very efficient service.
Kelvin
Great service when you need clarity and calm
Our solicitor was warm, friendly and provided crystal clear communication. A lot of conveyancers assume customers know everything about the process already, so it was really appreciated to hear each stage included in the price given.
Em
Quick and efficient
We used Lawhive for a transfer of property and conveyancing. Our solicitor was so helpful and thorough with the whole process. He responded quickly and efficiently to any questions or requests that we had and explained some of the more complicated issues regarding the process clearly.
Geri
Fantastic service and experience with Lawhive
I had the pleasure of working with Lawhive doing a transfer of equity on a property. Our solicitor’s service was amazing, she responded quickly to any questions or concerns and kept me updated throughout the process. I can strongly recommend her for any conveyancing work that you may need. Fantastic service all round.
Jane
Amazing experience
After placing an enquiry, I received a call 20 minutes later, and then 2 hours later, I had a solicitor assigned to me. They were absolutely incredible right from the word go - amazing and very prompt with replies, answering all my questions and keeping the process moving. We finally completed today and I am so unbelievably happy. I wouldn’t hesitate to use Lawhive again in the future if needed.
Lily
First class service
I initially made an online enquiry about a tricky conveyancing matter and received an immediate call back. They understood straight away what was needed and gave me a quote that was very reasonable. It was such a pleasure to find someone who was cheerful, professional and completely reassuring as I’d been getting quite anxious about the sale of my house. The service Lawhive has provided is absolutely first class and I cannot recommend them enough.
Charles
Empathetic, professional and efficient
I am an executor, selling my mother's home. I found the assistance I received from Lawhive first rate - empathetic, professional and efficient.
Mark
Great service from Lawhive
We used Lawhive for our conveyancing needs and our solicitor was very helpful, patient and informative. She helped us with our needs with prompt responses and provided a very efficient service.
Kelvin
Great service when you need clarity and calm
Our solicitor was warm, friendly and provided crystal clear communication. A lot of conveyancers assume customers know everything about the process already, so it was really appreciated to hear each stage included in the price given.
Em
Quick and efficient
We used Lawhive for a transfer of property and conveyancing. Our solicitor was so helpful and thorough with the whole process. He responded quickly and efficiently to any questions or requests that we had and explained some of the more complicated issues regarding the process clearly.
Geri
Fantastic service and experience with Lawhive
I had the pleasure of working with Lawhive doing a transfer of equity on a property. Our solicitor’s service was amazing, she responded quickly to any questions or concerns and kept me updated throughout the process. I can strongly recommend her for any conveyancing work that you may need. Fantastic service all round.
Jane
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01 overview
If you’re looking to buy a flat you will most likely have come across the term share of freehold. Even if you do have somewhat of an understanding of what this phrase means there are complexities that buyers need to consider.
This guide is also for sellers of freehold property and we explain how to extend your lease on a share of freehold.
Share of freehold essentially means that leaseholders collectively own shares in the freehold of a building, meaning the building itself, rather than only the flat you own.
In this comprehensive guide for individuals and businesses looking to buy or sell a share of freehold property, we cover the benefits and risks of owning a share of freehold. We also explore the legal processes involved in buying or selling, and the implications for property owners.
The page aims to inform you about the complexities and advantages of share of freehold transactions and the benefits of seeking expert legal assistance from Lawhive.
We’ve written this for:
Lawhive property solicitors can guide you through the process of buying or selling a share of a freehold property expertly, saving you time and money. Get in touch with us today for a free case assessment.
There are two main types of share of freehold legal structure, they are:
It is useful to compare freehold with leasehold and share of freehold to understand the key differences between these types of property ownership and the implications for property owners.
The key difference between leasehold and freehold is that freeholders own both the land a property is built on and the property itself. Leaseholders only own the flat and not the building or the land on which the building is constructed on. The building of a block of flats is owned by the freeholder, while the leaseholder rents an individual flat from the freeholder.
If you have a share of freehold you own a share in the freehold of your building, often with other leaseholders.
It might seem unfair that you own a flat but still don’t own the land your flat is built on. Fortunately, in the last few years legislation has improved leaseholder’s rights by giving leaseholders the opportunity to take over the freehold in their building from the freeholder or take over the management of their building.
There are some significant benefits to owning a share of your building’s freehold:
When weighing up whether to buy a share of the freehold of your building or not, there are some risks worth addressing and considerations that can help you make your mind up.
Taking on a share of the freehold of your building gives you added freedom to control the property as you see fit, however, it also comes with added responsibilities.
You and your fellow leaseholders will be responsible for organising property maintenance and management. This added responsibility can be a lot to handle, especially if you have many other responsibilities and demands on your time.
Disputes among freeholders can also be common. It’s worth knowing that disagreements or disputes with other leaseholders about how the building should be managed can lead to delays and complications in managing the property effectively.
If you are involved in a dispute, you may be able to negotiate a settlement using mediation. A mediator, an impartial professional can help both sides work out an agreement. It’s a confidential process and typically quicker and cheaper than going to court.
There are some legal complexities to buying or selling a share of freehold. If you want to sell your share of a freehold you will have to follow a collaborative process. You will need to consider collective decision-making, as you will require agreement from your fellow shareholders to sell your share.
You’ll likely require legal advice as it is a complex procedure to navigate.
Once you get permission from your fellow shareholders you will need to get your share valued and determine a fair value for your property with interested buyers.
When buying a share of freehold there are some initial considerations to make which will help you determine if this is the right property purchase for you.
The initial steps in purchasing a share of freehold, include financial considerations and legal due diligence. You will need to work out whether you have the financial resources to purchase a share of the freehold and if so, negotiate the purchase with the existing freeholders.
To determine the value of the share of freehold you may require the assistance of a professional surveyor experienced in freehold valuations.
You can support the surveyor’s valuation by providing them with details about the ground rent, lease terms, property condition and potential for development.
The surveyor will use this information to create a detailed valuation report, which will outline the freehold value and the process for determining this.
If you have the financing in place, are happy with the surveyor’s report and have negotiated with the existing freeholders, it’s time to start drafting and reviewing contracts.
Certain legal contracts are essential in the purchase process, including reviewing the freehold agreement to ensure compliance with relevant laws. The freehold agreement will indicate whether you need to pay ground rent and service charges to maintain the building.
A transfer of freehold share finalises the process. You will need to transfer the share of
the freehold. This is a process where the ownership of freehold is transferred to you from the
current owner by a formal deed to transfer ownership.
Your solicitor will need to submit the deed for registration at HM Land Registry. The seller’s solicitor will prepare the transfer for the other freeholders to sign. The purchase cannot be completed until the deed is signed by all owners.
Difficulties can arise when other flat owners don’t live in their flat, especially if they are not resident in the UK. The owner may be a company or have died, so it is important to establish communication with the owner as early as possible when looking to sell.
Selling a share of freehold involves gathering necessary documents and getting a professional valuation.
You will need to provide the following documents:
When selling your property, you will need to market the share of freehold attractively to entice buyers. To effectively market the share of freehold to potential buyers you may want to look at how long you have remaining on your lease, if you have fewer than 80 years left on your lease you may want to consider extending. This is because leases are considered short when they have fewer than 80 years remaining. Buyers see this as a short period as it may not last their lifetime, or they may want to gift the property in their will.
The less time left on your lease the more the value of your house can reduce. It can also make it hard to find buyers – with longer left on your lease you will see a greater number of potential buyers and boost your valuation.
After finding an estate agent with experience selling leasehold properties and putting the house on the market you will need to negotiate a selling price with interested buyers.
A well-drafted sale agreement should be drawn up. This is a legally binding agreement between you and the buyer outlining the terms and conditions of the sale. It records the terms of transfer and payment and the penalties in case of non-transfer or non-payment. This protects the interests of both parties.
The final steps are the transfer of the property and completion. As with buying a share of freehold, the ownership will need to be transferred and Land Registry records updated.
There are a range of costs and fees to consider:
There are many good reasons to use our solicitors, here are three that our clients mention:
The benefits of buying a share of freehold include more control over building management and maintenance and an easier lease extension process. However, it is important to consider lease length, and time commitment requirements when buying or selling a share of freehold.
If you need assistance in buying or selling a share of freehold, get in touch with Lawhive solicitors for professional legal advice to navigate the complexities of share of freehold transactions. Get in touch for a free assessment now.
With straightforward pricing - so you know exactly what to expect at every step.
