One can buy a freehold at any time in their life. However, buying the freehold of your flat may not be as easy as it may sound. You have to get your neighbors involved too to qualify. The law suggests that to purchase the freehold, you must bring together at least half of the leaseholders in the building. To succeed in the process, you and the other occupiers would be required to form a limited company that would be controlled by the flat owners. With all of you jointly owning the freehold, it becomes easier to collectively set ground rents and choose the best insurance for your destiny.
The eligibility for criteria when buy the freehold
All said and done, there are legal measures leaseholders need to adhere to when buying a freehold like the continuum. All occupants do not have to be on board. You can go ahead provided half of the flat owners are involved. The leaseholders must want to buy the freehold in a situation where there are only two flats in the building. Below is the summary of some of the basic eligibility for a group of leaseholders to buy the freehold:
- Slightly two-thirds of the flats must be owned by leaseholders who own long leases
- Half of the total number of flats in the building must be owned by leaseholders intending to buy a share of the freehold
- The building needs should contain at least two flats
- No more than 25 percent of the freehold building can be used for non-residential purposes
Advantages of a freehold property
Several advantages come with buying a cluster home. It automatically makes you a member of the homeowner’s association. You also become a member of the Management of the communal matters of the entire estate. Below is a comprehensive list of freehold property
- Freedom to perform renovations
- Ability to keep pets.
- Right to rent out one section of your home
- Freedom to install any additions
- Free lease extensions
- You control service charges
Critical Factors to Consider When Buying Freehold Residential Property
Below are the factors you need to consider when you want to purchase freehold residential property:
- Cost of the freehold: cost is one of the most critical factors to consider when acquiring a household property. Other than the cost of freehold property, consider other costs like legal fees and valuation costs to know if you can afford the entire cost of acquiring the freehold property.
- Eligibility: Before you decide to buy a freehold property you need to meet a qualified solicitor to help you determine your eligibility. Starting the purchasing process without knowing your eligibility may lead to disappointment.
- Location: Although there are several factors to put into consideration to determine the best location to purchase a residential property, the most ideal location is a place with several amenities
- Space: You need to be aware of the number of rooms in the freehold. It is best to choose a property that utilizes its maximum permissible gross floor area.
Possessing a freehold home means that you take on ownership of the entire property. Purchasing the continuum comes with a lot of benefits. Provided your alterations remain within the regulations of your local area, you may alter any portion of your home without any objection.