Owning the freehold to a leasehold property has both advantages and disadvantages. Here’s a breakdown of some of the issues you should consider:

Pros:

Control Over the Property: As the freeholder, you have ultimate control over the building and land, including the ability to make decisions on maintenance, alterations, and any future developments.

No Ground Rent: If you own the freehold, you don’t have to pay ground rent, which is a regular fee typically paid by leaseholders to the freeholder.

More Leverage on Lease Extensions: If you own the freehold, you can negotiate lease extensions more favourably without worrying about the terms set by an external freeholder.

Potential for Increased Property Value: Owning both the leasehold and freehold can make the property more attractive to potential buyers.

No Service Charges from a Third Party: Without an external freeholder, you avoid service charges or management fees they might impose for maintaining common areas or managing the building.

Cons:

Responsibility for Maintenance: As the freeholder, you become responsible for the upkeep and maintenance of the property. This could involve substantial costs, particularly for things like roofing, communal areas, and structural repairs.

Higher Initial Cost: Buying the freehold typically requires a significant upfront investment, which might not always make financial sense for everyone.

Possible Legal Complications: There can be legal complexities when it comes to managing both the freehold and leasehold aspects.

Time and Effort: Owning the freehold comes with more administrative work, such as handling any disputes with leaseholders, ensuring the building complies with regulations, and managing insurance.

Potential for Conflict with Leaseholders: If you’re the freeholder in a building with multiple leaseholders, there can be tension or disagreements about the building’s management, service charges, or property changes.

In the end, whether it’s a good move depends on your personal circumstances and how much time, effort, and money you’re willing to invest in managing the freehold.

If you need any assistance in purchasing the freehold to your leasehold property, Biscoes can help you through this process. Please contact us on 01983 533938.