If you own a property with a share of freehold it means that you own the leasehold of your ‘space’, plus a share of the freehold for the land and building the property is in.
Flats and apartments are commonly share of freehold. Owners have the leasehold for their individual flat and a share of the freehold for the building and land.
When there are four or more leaseholders, there are two ways to manage it:
i) Share of Freehold in personal names;
ii) Set up a Limited Company Share of Freehold.
Share of Freehold in personal names operates on trust between the other freeholders. This is often the set-up for small properties when there are only a couple of shares to manage. However, it could cause problems with your neighbours if they don’t fulfil their legal requirements and potentially expose you to legal issues.
To avoid these problems most share of freeholders use the second option: Set up a Limited Company Share of Freehold. The company is then registered with you and other co-owners as shareholders and directors who manage company laws as part of their ownership responsibilities.
Setting up and running a Limited company might sound daunting but specialists, such as here at Virtual Company Secretary, make it a simple and affordable solution. We can set this company up, manage it, and make sure you’re totally up to date with your legal responsibilities as a share of freeholder.
“The Directors agreed it made more sense to invest in a professional company secretary and accountant rather than to try and do it ourselves.
We wanted someone with the necessary expertise that we trusted, who could provide clear, concise explanations and be proactive.
All the communications I receive from VCS are short, simple e-mails, explaining exactly what needs to be done and by when. The benefit is I now feel back in control and less stressed because I have professional support in this area.”
If you would like help with your Share of Freehold contact us here
The information above does not in any way constitute advice. Seeking specialist expertise and support is highly recommended for all Company Directors.