Advantages of a freehold flat

[poppet2]

You don't normally hear of flats being bought freehold. Can anyone shed any light on the advantages of owning the freehold of a flat?

Also, is it possible to purchase a single freehold of one flat if you live in a building that contains several flats?

[FACEBOOK]

In most cases you won't be purchasing the single freehold to a flat, you and the other leaseholders will jointly apply to purchase the freehold as the management company, which is probably already set up in your apartment block, splitting the cost of purchase between yourselves. There are advantages of going ahead with this as all the annual ground rents and some other fees will now go to your management company which you will be a shareholder of. Many flats are sold these days with 125 year leases so although you can apply for extensions, if you can get the freehold it's obviously better longterm for all concerned. It depends though, if the other people in your block don't care and don't want to part with their share of the cost it can be a hassle.

Edited April 16, 2012 by FACEBOOK

[Jeffrey Shaw]

You don't normally hear of flats being bought freehold. Can anyone shed any light on the advantages of owning the freehold of a flat?

Also, is it possible to purchase a single freehold of one flat if you live in a building that contains several flats?

There are almost** insuperable disadvantages, in law, to ownership of a single freehold flat.

 

These stem from the unavailability of reciprocal covenants and the lack of a leasehold estate in respect of which the freehold reversion has an associated right to threaten forfeiture.

 

**: 'almost', because there is a little-used option of making the entire block 'commonhold'. The option was enacted in 2002, some ten years ago- but in all that time, during which thousands of blocks of flats have been built (and thousands of houses turned into flats), the total number of commonhold schemes in E&W is a princely FOURTEEN!e

[ccit]

I own a flat and it was only the fact that it is leasehold that prevented alterations being made to the neighbouring flat which would have had serious and detrimental consequences on the property.

LA Planning gave permission but fortunately the freehold reversioner company refused this as the work was in breach of the terms of the lease. My advice would be to buy leasehold and to become acquainted with the contents of the lease.

Edited April 18, 2012 by ccit

[Jeffrey Shaw]

Yes, the Town and Country Planning legislation does not take much notice of who owns what.

But that's the case no matter whether ownership is freehold or leasehold.

[Jeffrey Shaw]

I have not seen any freehold flats for sale but would not be inclined to buy one. I own a leasehold flat and the neighbours below wished to make alterations which would have been to the (serious) detriment of my property. Planning permission was given by the council despite the fact that it was quite clear that the work required the use of my property and boundary. I was told that under planning law folk can apply (and be given permission) to build anywhere whether they own the land or not, and if it encroaches on someone else's property than that is of no consequence either. I am still struggling with that one!

Fortunately the saviour in this case was the leasehold company** which refused outright to grant permission as it was wholly in breach of the terms of the lease. My advice would be to buy leasehold and to become intimately acquainted with the contents of the lease.

** Er, no: probably the freehold reversioner company. You yourself are the leaseholder.

[ccit]

Thank you for that information - I have amended my post.

Edited April 18, 2012 by ccit

[poppet2]

I have not seen any freehold flats for sale but would not be inclined to buy one. I own a leasehold flat and the neighbours below wished to make alterations which would have been to the (serious) detriment of my property. Planning permission was given by the council despite the fact that it was quite clear that the work required the use of my property and boundary. I was told that under planning law folk can apply (and be given permission) to build anywhere whether they own the land or not, and if it encroaches on someone else's property than that is of no consequence either. I am still struggling with that one!

Fortunately the saviour in this case was the leasehold company which refused outright to grant permission as it was wholly in breach of the terms of the lease. My advice would be to buy leasehold and to become intimately acquainted with the contents of the lease.

Thank you both for your replies, they are most helpful.

Ccit, I'm intrigued, what kind of work did your neighbour's have done that encroached on your property? Also, would the Council have allowed your neighbour to pull down a support wall, which may have be connected to your property? It makes me wonder on what grounds one can object to planning permission.

Edited April 17, 2012 by poppet2

[Jeffrey Shaw]

It makes me wonder on what grounds one can object to planning permission.

Here's a useful summary (albeit from a firm seeking business!) http://www.fox-planning-consultancy.co.uk/Objections.htm

[ccit]

This is an unusual case so might be of no relevance to your enquiry. If you are thinking of purchasing the freehold of a flat in a leasehold block you would need to consult a solicitor. As a matter of interest, why would you wish to do this even if you could?

@J Shaw - thank you for the link - useful to know.

Edited April 18, 2012 by ccit