In a share of freehold arrangement, flats in a building are still sold with individual leases, but all flat owners jointly hold the freehold title, usually through a limited company in which each owner holds shares. A simple example would be four owners in a converted Victorian house, each holding a twenty-five per cent share of the freehold company alongside their own leasehold flat title.
The practical advantage over a standard leasehold is control. Because the leaseholders collectively are also the freeholder, decisions about building insurance, maintenance of common areas and major works are made among the owners themselves rather than by an external landlord. Crucially, the group can extend their own leases more straightforwardly than leaseholders who must negotiate with a separate freeholder, which protects long-term value.
A conveyancer handling the purchase will review both the lease and the share transfer documents for the freehold company, including any company liabilities or charges. Buyers should read the company articles of association carefully to understand voting rights, how costs are split and the process for selling their share in future.
For overseas investors, share of freehold can simplify remote management by reducing dependence on an external freeholder for maintenance and lease decisions, but the added legal obligations of company co-ownership make independent legal advice from a qualified solicitor essential before purchase.