Why buy your freehold

PROS

• Gives you greater security in your home. Instead of a lease whose term reduces year by year, you own something in perpetuity.
• You can increase the sale value of your flat as your home is more attractive to buyers.
• Greater control over the management of the premises.
• By owning the freehold you can keep abreast of all expenditure and you are able to plan any major expenditure.
• You can structure the new leases in agreement with your fellow leaseholders so that you pay a peppercorn ground rent (that is rent free) instead of your existing ground rent.
• Reduces Management charges. Typically in central Brighton, you can pay over £800-£1000 per year for your block purely for a management service, i.e. collection of monies, inspection of premises and arrangement of maintenance. If you manage the property yourselves, you will save this cost. Alternatively you can take greater control over who does the property management.
• The freeholder normally has rights to develop the property, for his own benefit. Owning the freehold gives you greater control over any proposed modifications to the building.

CONS

• You will have to pay for your share of the Freehold.
• Blocks of flats will still need to be managed.
• Freehold ownership can bring with it various tensions with your neighbours.
• You will need to set up an RTE company to own the freehold and thus the block.
• You will need to enforce elements of the Freehold which could lead to potential conflicts.
• You will need to prepare accounts, statements and reports for your RTM Company

With advice from Positive Property Solutions you will have professional help every step of the way.