Why should you own the freehold to your own block of flats?


Author : Mary-Anne Bowring

Owning the freehold to your block of flats in England can offer several advantages:

As the freeholder, you have more control over the management and maintenance of the building. You decide who will manage the building and will have far more say in service charge levels. This includes decisions regarding repairs, improvements, and services provided to the residents. By owning the freehold, you have more say in how your building is run and, alongside your neighbours, can make decisions based on the needs of the community.

Freehold ownership gives you greater flexibility in making changes to the property, such as alterations or extensions, with no need permission from a landlord or management company. This can be a real benefit if you wish to extend your flat or make significant changes to the communal areas of the building. With greater flexibility, you can tailor the building to meet the needs of the residents, which can be a real selling point when any of the residents come to sell their property.

Owning the freehold can increase the value of your property. Buyers often prefer properties where they can have more control and fewer restrictions, making freehold properties more attractive in the market. This can be a real advantage if you are looking to sell your property in the future. Freehold ownership also represents a long-term investment, as you retain ownership of the property and the land it sits on indefinitely, potentially passing it on to future generations.

By owning the freehold, all the residents will avoid some of the common issues associated with leasehold properties, such as escalating ground rents, lease extension costs and high service charges. This can be a real benefit if you are looking for a more stable and secure investment opportunity. Freehold ownership allows you to build a stronger sense of community among the residents, as you have more control over communal spaces and facilities, enabling a better living environment.

Freehold Responsibilities

It is important, however, to consider that owning the freehold also comes with responsibilities. You will need to maintain the building and ensure compliance with legal requirements, which can involve more administrative work. Additionally, conflicts with leaseholders can arise if they disagree with decisions made by the freeholder. Therefore, careful consideration and proper management are essential for owning the freehold of your block of flats. The best solution is invariably to employ an agent to manage the building on the resident’s behalf. Having a third party involved in the decision-making can minimise disputes and should bring savings on items such as buildings insurance and maintenance costs.

Service Charge Sorted

Ringley Group’s servicchargesorted.co.uk has been established to provide management services to the freeholders of blocks, no matter how large or small they are, anywhere in England and Wales. Our approach and purchasing power save time and money, and enables residents to carry on with their lives with one less worry to deal with. Please go to servicechargesorted.co.uk for further information or call us on 020 7267 2900. We look forward to hearing from you.

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