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).