If you’ve been property hunting, you may have seen a listing described as “share of freehold.”
It often sounds like the best of both worlds-but many buyers aren’t entirely sure what they’re actually getting. The reality is slightly more nuanced.
First-you still have a lease
The most common misconception is that share of freehold means you own the property outright.
You don’t.
You still own your individual flat on a lease. The difference is that you also jointly own the freehold of the building with the other flat owners.
So legally you are both:
- A leaseholder of your own flat
- A co-landlord of the building
What changes compared to normal leasehold?
The key difference is control.
Instead of an external freeholder or management company making decisions (and setting costs), the flat owners manage the building themselves- usually through a company set up for that purpose.
This typically means:
- No escalating ground rent
- More say over maintenance works
- Greater transparency over service charges
- The ability to extend leases more easily
The advantages
Stability
You’re not reliant on a third-party landlord. Many disputes in leasehold properties come from poor management-share of freehold removes that issue.
Easier lease extensions
Extending the lease is usually straightforward because you and the other owners control the freehold/
Saleability
Buyers and lenders generally view share of freehold positively because it reduces long-term lease risk.
The responsibilities (often overlooked)
Share of freehold also means shared responsibility.
You and the other owners must:
- Organise insurance
- Agree repairs
- Manage finances
- Make decisions collectively
If relationships between owners break down, things can become difficult- especially in smaller buildings with only 2-3 flats.
In simple terms: you gain control, but you also gain admin.
Is it better than leasehold?
Often yes-but not automatically.
A well-run leasehold block can be easier than a poorly managed share-of-freehold building where owners disagree about spending or maintenance.
The important question is not just the tenure, but how the building is managed in practice.
How Attwells helps
When acting on a share of freehold purchase, we check more than just the title. We review:
- The lease terms
- The company structure
- Responsibilities between owners
- Any upcoming works or disputes
This helps you understand not just what you’re buying- but what you’re taking on.
If you’re unsure whether a share of freehold property is safer option than leasehold, we can talk you through the practical implications before you commit. Contact us today on 01473 229200
