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ARTICLE · 08 SEPTEMBER 2016

'Share Of Freehold' Explained

Wedlake Bell LLP
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The phrase ‘share of freehold' can sometimes lead to confusion among prospective purchasers and flat-owners

United KingdomReal Estate and Construction

Q: I am buying a flat that is being marketed as having a 'share of freehold'. Please explain what that phrase actually means, whether there is still a lease and whether I need consent to alter the flat after I purchase it.

A: Buying a share of freehold means that you will acquire a shared ownership of the freehold title relating to the building, as well as a leasehold interest in the individual flat.

Usually the freehold title is registered in the name of a company in which the flat owners will be shareholders. Alternatively, the freehold title can be registered in the joint names of up to four individuals.

Owning a share of the freehold does not entitle you to simply ignore the terms of the lease. Accordingly, if the lease prohibits alterations without landlord's consent, breaching the terms of the lease could have costly consequences.

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