2007-03-05 19:47:01 · 6 answers · asked by melly 1 in Business & Finance ➔ Renting & Real Estate
one contradicts the other
2007-03-05 19:50:02 · answer #1 · answered by srracvuee 7 · 0⤊ 3⤋
It means that the person who owns the house outright, ie the freeholder has leased one or more of the flats. As a freeholder it does not mean you will be able to live in one of the flats as the leaseholders have the right to stay put for the length of the lease - and in England most leaseholders are entitled by law to automatic lease extension, indeed after two years if 50% of the leaseholders club together they are legally entitled to buy the freehold - which will increase the value of their individual leaseholds. The freeholder is responsible for the upkeep of the building but can charge rent and service charge to the leaseholders to recoup his outgoings. Basically it is not much of an investment to buy a freehold subject to long leases, unless the rent is enough to make it worthwhile.
2007-03-06 05:02:52 · answer #2 · answered by Helen C 4 · 0⤊ 1⤋
The above answers are mostly incorrect or misunderstanding your issue I believe.
What this means is that the flat is effectively freehold - but jointly owned by the individual owners of all the flats. If for example there are 3 flats in a converted house, the owners get together and buy the freehold (i.e. it is owned by a new company set up by the 3 flats). The new Freeholder will then lease it out to themselves, but on a long lease - typically 999 years. The management company who owns the freehold (whose management is the 3 flat owners) will then decide a fee to charge themselves in order to cover joint charges such as buildings insurance, electricity for communal areas, etc...
When the flat is sold, the new owner buys a share of the freehold, with a long lease on the flat they are buying.
Complicated business to explain, but hope that helps.
2007-03-06 05:42:13 · answer #3 · answered by Anonymous · 1⤊ 1⤋
Most previous answerers are correct, the leaseholder pays ground rent to the freeholder. The ground rent is agreed when a lease is renewed. There have recently been changes in leaseholders' rights, and the government have set up a free service to advise leaseholders. If you google the Leasehold Advisory Service, you'll find their helpful website. You can also have a free consultation with someone who specialises in Leasehold Law.
2007-03-10 03:21:17 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Flats usually are lease hold as none of them own the land.
In this case I presume the flat is in the main building.
So the main building is Freehold, the owner owns the land and the property. The flat is leasehold and has to pay ground rent to the main landowner.
2007-03-06 04:18:02 · answer #5 · answered by maka 4 · 0⤊ 2⤋
The flat pays ground rent to the landowner. The lease termis will give the details.
2007-03-06 03:55:16 · answer #6 · answered by Anonymous · 1⤊ 1⤋