In the UK, purchasing a share of freehold involves buying a portion of the freehold interest in a property, which typically means owning a part of the building along with the other freehold owners. This can be a complex process, but it can provide more control over the property and potentially increase its value.
The process for purchasing a share of freehold can involve the following steps:
- Check the eligibility: Ensure that the property is eligible for share of freehold ownership. Typically, this means that the property is a leasehold property and the majority of the leaseholders agree to purchase the freehold.
- Form a company: The leaseholders can form a company, known as a right to manage (RTM) company or a company limited by guarantee, to purchase the freehold interest in the property.
- Valuation and negotiation: A valuation of the freehold interest in the property will need to be conducted and a negotiation with the freeholder to agree on a purchase price.
- Legal process: Once an agreement on the purchase price is reached, a legal process will need to be followed, which may involve the preparation of legal documents and the payment of fees.
- Completion: Once the legal process is completed, the share of freehold ownership can be transferred to the leaseholders. This typically involves the transfer of shares in the company to the leaseholders.
It is recommended to seek professional advice from a solicitor or a specialist in share of freehold purchases to ensure a smooth and successful transaction.
