The one place you want to feel safe and at home in is of course your home. Many people who own their own homes – a house perhaps, or a bungalow – get this feeling every time they walk through the front door and close it behind them – because houses are usually owned outright – on a freehold basis. But if you happen to own a flat under a leasehold agreement, you may feel slightly differently about it.
When you buy a flat with a lease you are, in effect, simply buying the right to stay in the flat for a set length of time at most. So in essence your purchase is somewhere between renting a property and owning it outright. Even when you have paid your mortgage off you won’t own the flat – you will still lease it. If the lease happens to be quite short by this time, you will probably feel insecure as to what the future may hold.
Acquisition of Your Freehold – the benefits
You can see then how beneficial it can be to think about buying the freehold to your flat. You cannot do this alone but if enough other people in your block of flats are interested in freehold acquisition as well, you should definitely consider it, especially if you and/or the other leaseholders have a short lease. Buying your freehold [or freehold enfranchisement as tenants clubbing together to buy the freehold jointly is also known] does give you more benefits with regard to your security.
It is not just the fact that you don’t have to worry about the length of the lease when you opt to purchase the freehold of your block. You also have the advantage of knowing you have more options should you ever decide to sell your flat. If you look to sell the flat in the future, you will doubtless find it easier to sell if you have a freehold to offer rather than if you just own a lease. Share of freehold properties are more attractive to prospective buyers. This is particularly true if the lease on the flat has been considerably shortened by the time you try to sell, as many seller’s with a short lease experience difficulty selling the flat due to mortgage lenders being unwilling to lend on short leases. As such, the flat may have become impossible to mortgage and, hence, unsaleable.
A freehold acquisition is seen as being far more valuable to the flat owner. The share in the freehold can be transferred to the buyer on completion of the sale. People are generally willing to pay more for the freehold to a property than they will for a comparable property that only has a leasehold interest. This is another fact in favour of the security that such an agreement offers.
If you can meet the legal requirements needed to exercise your right to buy your freehold, it is certainly something you should give serious consideration to. You will understand why it offers more in the way of security both now and in the future.
Considering Freehold Acquisition? Contact our specialists today
Buying the Freehold of your block of flats can prove complex. You are going to need specialist legal advice. Our expert team can help you wherever you live. Contact our solicitors today for a FREE first phone consultation on your Freehold Acquisition;
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