Share of a freehold
Share of freehold is a type of property ownership (common in the UK) where:
- You own the leasehold of your flat (just like a normal leasehold property), and
- You also jointly own a share of the freehold of the building with the other flat owners.
How It Works
In a typical block of flats:
- The freeholder owns the building and the land.
- The leaseholders own their individual flats for a fixed term (e.g., 99 or 125 years).
With share of freehold:
- The leaseholders collectively buy the freehold.
- Each flat owner owns a share in:
- A company that owns the freehold, or
- The freehold title directly as joint owners.
You still have a lease — but you’re effectively your own landlord (together with the other flat owners).
Advantages
✅ More control over management
You and the other owners decide on maintenance, insurance, and service charges.
✅ Easier to extend the lease
Usually cheaper and simpler because you control the freehold.
✅ More attractive to buyers
Properties with share of freehold are often more desirable.
✅ Potentially lower service charges
No external freeholder taking profit.
Disadvantages
⚠️ Shared responsibility
You must cooperate with other owners on repairs and decisions.
⚠️ Disputes can arise
If owners disagree, management can become difficult.
⚠️ You still have a lease
You must comply with lease terms unless formally changed.
Example
If a building has 4 flats:
- Each owner owns their flat (leasehold).
- All 4 owners jointly own the freehold (25% each).