Buying a freehold

[vicars]

Hi all,

I have the opportunity to buy the freehold on a block of 9 flats in city centre where I own a leasehold flat. I am concerned that the freeholder is getting out while the going is good (no major repairs or maintenance for a long time) and I will be left with bills to pay - or is it simply a case of getting the other leaseholders to pay for these things. The block also has a lift so a possible major cost.

Am I open to financial loss and trouble or should I simply worry about the paperwork? Any advice welcome.

[Didwot]

If you look at your lease you will find that you are liable to pay your (one ninth?) share of any repair bills, anyway, so you should be no worse off in that respect. There are advantages to owning the freehold with your nieghbours. First of all it means that the people who own the flats will have control of the management of the block. Together you will be able to ensure that necessary repairs are done on time etc. You may also be able to make a savng on insurance because landlord's often get commission from their favourite insurer, and do not shop about. Secondly your lease is getting shorter every day. Once it gets below about 50 years the falt becomes unmortgageable, and very diffficult to sell, If you own the freehold you can give yourself a longer lease. Thirdlly flats that have a share of the freehold are worth more than those without.