Hopton Build assisted by “The Law Commission” have registered new Freehold standard for apartments. All designed within a Commonhold Development.
Its expensive to set up but the owners greatly benefit.
These are the only known current new freehold apartments in England and Wales, the common areas shared by the owners jointly.
No ground rents, no uncontrollable management – and unlike Leasehold you won’t have to hand it back at some future date!
A common misunderstanding, Leaseholders believing they were buying / mortgaging their own home. The government have just published a guide on leasing.
“Leasehold is a type of long-term tenancy; it is not the same as outright ownership”.
Below is just a sample of local Leasehold apartments (Oct 2019), the building and common areas are owned by a freeholder who charges the leaseholders ground rents. They often also control the management, the leaseholder thereby not having any real control over their annual charges.
All these homes will revert back to the freeholder at the end of the lease unless you either pay to extend the lease or buy the lease.
It’s a common misconception “Leaseholders own the building and are just renting the land”.
In a select few developments the leaseholders may be part owners of the freehold , sold as “Leasehold with share of Freehold”.
If it says Freehold - Ask for proof
This is a typical misleading error by estate agents, many either incompetent, don’t understand leasehold or are intentionally misleading. Fortunately this example was a simple error and this agent was quick to correct it.
This development is not Freehold – it’s Leasehold! The difference between owning and just being a tenant is massive.
There should also be enough details on remaining length of lease, annual ground rent charge, how it accumulates, any permission fees, management charges, maintenance etc. If a development has a poor or healthy sinking fund is also a material consideration.