Flat ‘Head Lease’ vs Share Of Freehold
Discussion
I’m looking at a flat with a 999-ish year lease that I thought came with a share of the freehold but in fact comes with a share of the head lease.
I would own a share of a company that owns the lease. Does anyone have any experience of these? Are there any advantages/disadvantages to this compared to owning a share of the freehold itself?
I would own a share of a company that owns the lease. Does anyone have any experience of these? Are there any advantages/disadvantages to this compared to owning a share of the freehold itself?
Yep my block has a headlease.
Essentially the freeholder leases the whole building, then the headleasee rents the individual flats.
If you have a share of the headlease then treat it is the same as share of freehold. Normally if you buy the freehold you buy the headlease at the same time and consolidate the two.
Edit to say I see you don't have the freehold. I would suggest that you join with half the other flats and buy it, won't cost much with your long lease.
Essentially the freeholder leases the whole building, then the headleasee rents the individual flats.
If you have a share of the headlease then treat it is the same as share of freehold. Normally if you buy the freehold you buy the headlease at the same time and consolidate the two.
Edit to say I see you don't have the freehold. I would suggest that you join with half the other flats and buy it, won't cost much with your long lease.
Bob_The_Builder said:
Yep my block has a headlease.
Essentially the freeholder leases the whole building, then the headleasee rents the individual flats.
If you have a share of the headlease then treat it is the same as share of freehold. Normally if you buy the freehold you buy the headlease at the same time and consolidate the two.
Edit to say I see you don't have the freehold. I would suggest that you join with half the other flats and buy it, won't cost much with your long lease.
Hi, really old comment but thought I would give it a shot! I m in the process of buying a flat with a headlease structure, and in the underlease, there is a requirement for underlessees to get a share in the headlease.Essentially the freeholder leases the whole building, then the headleasee rents the individual flats.
If you have a share of the headlease then treat it is the same as share of freehold. Normally if you buy the freehold you buy the headlease at the same time and consolidate the two.
Edit to say I see you don't have the freehold. I would suggest that you join with half the other flats and buy it, won't cost much with your long lease.
Are you able to tell me what this actually results in? Such as being able to influence the running of the building etc.
Additionally, looking at the Gov website, I can see the residents as directors of the company that has the headlease, however they are all showing as resigned, including the seller of the flat I m buying. Do you know why this could be?
Also worth noting that the flat is advertised as a leasehold. Not share of freehold like the OPs was.
Thanks.
Gassing Station | Homes, Gardens and DIY | Top of Page | What's New | My Stuff