Which flat would you choose?

[Swallow34]

I'm FTB looking for my permanent home. I dont intend to resell the flat once I bought it.

I've narrowed the search down to 2 flats :
Flat A - leasehold 140 years remaining.

Flat B - leasehold 105 years remain + entire freehold title. (can easily extend lease anytime)

I prefer the location and interior layout of Flat A . Flat B is good but I know I'll change some elements eventually ( change window to door, move kitchen to another position)

Would you choose Flat A because less project afterwards also lease is long so makes no difference...?

Would you choose Flat B because its got freehold title, better control, better for long term holding?

I've read a lot info about leasehold, if no unreasonable clause/evil freeholder, maybe it's not too bad to choose leasehold???

I know having a freehold property also means the greater responsibility, which I don't mind as if I own a property, I'll want to maintain it nicely anyway.

How important is to have the freehold title? Is there any angle I missed out?

What's your opinion/experience on freehold/leasehold situation?

My first property was a leasehold flat, never again. The free holder came up with all kinds of additional charges, and you can't do anything to the property without permission even when you open the lease hold.
Freehold every time

Definitely B so that you are your own freeholder.

Whatever you do, try to go for something with a bit of outside space, even a tiny balcony.

Freehold means freedom, but check how maintenance and insurance of the building etc.is organised.

Make sure you have designated parking too, that will not be used by others.

Thank you for advice!

@RewildingAmbridge In that case, even solicitor goes through the document, that doesn't prevent future trouble!? Sounds 🤢🤢

@OldTinHat @CapYourDoff freehold sounds more secure but that's also limits the choice on current mad market 😓 will check how maintenance being arranged in the official document.

If there are any surprises, being a freeholder is better than leaseholder...🙈

A friend has been living in leasehold flat for 30 years , he renewed the lease once, so far hasn't hear the friend complaint anything about the lease situation... Maybe the challenge is to have a good luck to find a ok leasehold 😢(if freehold is not available)

leasehold is a bit of a lottery - 95% are fine and no issues but if you have a argument with the head leaseholder then things can go v wrong.

how many flats in each block? a large block with a well-organised system for paying services / lifts / roof repair fund is lower risk than a flat-above-a-shop with only 3 properties and no organisation.

If there are any surprises, being a freeholder is better than leaseholder...

Depends.

Who is the freehold shared with? Do you have one or more leaseholders who don't have share of freehold? As if any of them are a landlord then expect them to complain about paying for every bit of shared maintenance and trying to wiggle out of it. (It's not just landlords who don't want to pay but all the people with freeholds I know who had issues have had to deal with at least one landlord.)

With a leasehold you need to research your freeholder. Some are shit, some are absent and a few are ok.

Oh and read copies of any documentation in full yourself. (Yes it's boring but least you go in warned.) If you don't understand specific sections of it, ask around if anyone you know has similar, ask them what it means and then use that to then ask your solicitor detailed questions so they explain what it means.

B all the way.

you and the other freeholders will decide service charges and when you want to Rte do the roof etc. it gives you control over your asset

I used to work for one of the UK's largest freeholders. At my interview, the Director asked if I lived in a flat (I didn't). After a few years working there, I saw why it was such a bad thing and why he was a multi millionaire. When I did buy a flat, I made sure I bought one where I owned the freehold. When I sold that flat, I also sold him the freehold!

Thank you for everyone's input , super helpful 🙏🙏🙏

Both flats are Victorian house converted to 2 flats. Both are the ground floor looking for buyers.

A , the freeholder owns the upper flat, currently renting out to students/professionals
So, upstairs neighbors are constantly changing... another red flag!? 😅 The seller who has been staying in the flat for 10 years, seems to have a good relationship with the freeholder though.

B, Ground floor owns the entire freehold. Seller told me they split cost 50/50 with upstairs. The price per sqm is more expensive than flat A plus I need to add on renovation costs...(usually property prices in this postcode should be cheaper than flat A)

As I don't need to change anything for Flat A, leasehold seems fine as long as the agreement with freeholder is reasonable and clear. Another question just came to my mind: the current freeholder may change in the future, say, sold to others or a management company, therefore what's OK now may not be OK in the future!? The new freeholder may change rules!?

I've been thinking about all of these during bank holiday 24h non stop 😂

I've made a note of all the advice here and will request more info from both agents. Glad bank holiday is coming to an end 🙈

Also check with your mortgage company, some don’t like freeholder responsibilities with more than one title in the freehold.

You could approach the freeholder of flat A and ask if they would be willing to sell a share of the freehold to you. They might want a chunk of change to help with the cost of living crisis, and whilst it would imcrease the value of 'your' flat, it wouldn't decrease the value of theirs by much.

In Flat A do you have a separate entrance from the tenants?

Only because people who live in a place for a short time don't give a fig about the state of the entrance or even if they do, if their landlord is useless they give up.

If you do then it's worth doing what BenCooperisaGod has suggested.

In Flat B you are in control so need to read up and understand all the legislation on how to charge the other flat for maintenance and works so they pay you without a fight. While an inform route may work for your seller it won't necessarily work for you or continue to work for you at any future pont in time. For example if the leaseholder has an accident so their family members are sorting out their affairs if they are told you haven't asked for £700 to repair the guttering correctly adhering to the relevant legislation then they won't pay up.