questions to ask about 50/50 shared freehold

[obachan]

Hi everyone,

We're trying to buy in London. All flats/maisonettes we've seen so far have been leasehold, but tomorrow I'm viewing one with a share of the freehold.

It's two purpose-built Victorian maisonettes, with freehold shared 50/50 between the properties.

From what I've read, shared freehold is marketed as a positive but is also pretty complicated, and it's not like owning a freehold house. The lease and its legal stipulations still exist, don't they? e.g. if the lease says no pets, or no piano, then we couldn't just overrule that because we're part-freehold owners?

And is it correct that freehold co-owners have to work together to negotiate things like structural maintenance work and building insurance?

I'm still researching this, but if anyone has any examples of things to watch out for, or questions to ask the vendor/agent, then I'd really appreciate it! Also, if I've really misunderstood any concepts, I'd love to be corrected.

So far I was thinking:

• how are decisions made regarding major and minor repairs to the exterior? are we expected to contribute to an emergency/ongoing repair fund?
• what day-to-day restrictions does the lease make, especially regarding pets, interior renovations and subletting? what are the penalties for breaking the lease's terms and who enforces them?
• what has interaction with the other freeholder been like so far? any disputes? is there any mechanism for mediation if freeholders seriously disagree, or does it require lawyers and court action?
• does building insurance have to be jointly agreed and paid by both freeholders? how much is the typical annual cost?
• does ground rent still exist? if so, with a 50/50 freehold split, who collects it and where does it go?
• could the other freeholder potentially sell their share of freehold to a property investment/management company? would we then be obliged to co-operate on all maintenance and financial issues with them?

Very interested in hearing from anyone who's bought in a similar situation, or knows about this stuff! Thanks.

We had a flat (leasehold + 50% share of freehold) flat for 3 years.

We had a survey done to ensure no major works eg. new roof were needed.

We didn't need any major works; we repaired some rendering and painted the front garden fence ourselves, had the woodwork at the front of the house painted, had the tiny communal hall painted when we were having some rooms in our flat painted. We saw these things as an investment in the property and for our enjoyment, so didn't muck about trying to claim the small amount of money from the neighbours.

They did some bits too, originally the garden did not have a fence splitting it (although it was split on the lease plans) so they put a fence up.

We didn't pay ground rent to each other; we extended our lease, they agreed to it on the proviso they could extend theirs at a later date. I arranged a joint insurance policy (through a broker, you can't use a regular home insurer usually, it was about £340 a year), and they paid half to me.

The only issue we ever really had was that the communal hall light was on their electric meter and they got a bit pissy when DP left it on overnight by mistake.

Overall it was good for us; the property was structurally sound, we didn't need major repairs, we were able to do work to our flat (new boiler etc) to improve it, and minor things like tidying up the gardens and a bit of paint in the hall which cost very little and helped us sell it. We didn't have to pay ground rent or service charges, which was great.

I'm not sure why anyone would sell their part of a freehold to a property management company, I can't see how they would benefit as they'd need to pay service charges etc? As joint freeholder you could probably contest this (you would have to sign the paperwork to agree to it).

Thanks very much for that detailed response, AwkwardPaws27. It does sound like things can run pretty smoothly so long as co-freeholders are communicative, co-operative etc. We're hoping to stay in the property for quite a few years, though, so I do worry that somewhere down the line there'd be a major renovation needed.

I don't really see why anyone would sell their freehold share to a company either, but you never know! Maybe as a short-term way to raise cash, with some kind of agreement on nominal ground rent for a x number of years? I really have no idea: just wanted to check it wasn't a well-known issue, and it sounds like it isn't. Thanks again!

The other freeholder would have to consent to the sale of the share of the freehold to the management company, do not really possible. Unless something drastic like a court order happened.

so