If you’re in the process of purchasing a flat or apartment, chances are you’ve come across the term “share of freehold.” But what does it actually mean? And how is it different from owning a leasehold or freehold property?
In this guide, we break down the key concepts of property ownership in England and Wales, with a particular focus on share of freehold, and explain what this form of ownership could mean for you as a buyer.
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Call us on 020 7870 2736 or complete our online enquiry form.
Freehold and Leasehold: The Basics
To understand share of freehold, you first need to get to grips with the two core property ownership types in the UK: freehold and leasehold.
Freehold
Buying a property freehold means you own both the property and the land it stands on outright, with no time limits. You’re responsible for everything: the structure, the roof, the garden, it’s all yours to maintain, manage, and enjoy indefinitely.
Leasehold
With leasehold ownership, you purchase the right to live in a property for a set period of time, but you don’t own the land or building structure. That’s retained by the freeholder (often referred to as the landlord).
Leaseholders usually pay ground rent and service charges, and they often need the freeholder’s consent to make significant alterations. Once the lease expires, the property reverts to the freeholder unless extended.
What Is Share of Freehold?
Share of freehold is a hybrid form of ownership that usually applies to flats. In this arrangement, you still own your individual flat on a leasehold basis, but you also own a share of the freehold for the building.
In other words, you jointly own the land and the structure along with the other flat owners, giving you more control, fewer landlord headaches, and a greater say in how the building is run.
How Is Share of Freehold Set Up?
There are typically two structures used for share of freehold arrangements:
- Direct Joint Ownership: A small group of flat owners (usually no more than four) hold the freehold together in their personal names. This setup may require a formal trust deed to clarify each person’s responsibilities.
- Company Ownership: More commonly, a limited company is created to hold the freehold, and each flat owner becomes a shareholder or member of that company. This approach is often cleaner and easier to manage, particularly in larger buildings.
Why Opt for Share of Freehold?
This model was developed to give leaseholders more autonomy over their homes. It offers a middle ground between the independence of freehold and the affordability of leasehold, especially for flats where owning the land individually isn’t practical.
Owning a share of the freehold allows flat owners to:
- Have a stronger voice in managing communal areas and repairs
- Avoid excessive service charges and ground rent
- Simplify the lease extension process, often without high premiums or negotiation battles
- Maintain better oversight of long-term maintenance and legal compliance
Share of Freehold vs Leasehold: At a Glance
| Feature | Leasehold | Share of Freehold |
| Ownership of land | No | Yes (jointly with other leaseholders) |
| Lease length | Fixed; needs extending over time | Still leasehold, but extensions are simpler |
| Control over building decisions | Limited – rests with the freeholder | Greater control via collective ownership |
| Ground rent | Usually required | Typically none |
| Service charges | Set by freeholder or managing agent | Agreed among co-owners |
| Ability to make changes | Requires landlord consent | More flexibility, though still regulated |
Legal Expertise for Leasehold and Share of Freehold Transactions
At Lewis Nedas Law, we understand how nuanced property law can be, particularly when dealing with leaseholds and share of freeholds. These transactions involve unique legal considerations that demand specialist attention.
Our property team offers expert support with:
- Leasehold and share of freehold purchases and sales
- Lease extensions and variations
We take a strategic and proactive approach, ensuring that our clients not only understand their rights but are fully supported through every step of the conveyancing process.
At Lewis Nedas Law, we are proud to be accredited by the Law Society’s Conveyancing Quality Scheme (CQS), reflecting our high standards in residential property law.
Our conveyancing team is committed to a client-focused, responsive approach. We work efficiently to make the buying or selling process as smooth and stress-free as possible, offering clear advice every step of the way. Clients benefit from fast, secure communication and access to a no-obligation conveyancing quote for complete transparency.
We are also recognised and approved by the lender panels of major UK banks, ensuring a seamless experience if you’re financing your purchase through a mortgage.
Whether you’re a first-time buyer, an investor, or managing a more complex transaction, we tailor our service to meet your individual needs, delivering legal support that’s as practical as it is professional.
Contact our expert Property Team in London
Call us on 020 7870 2736 or complete our online enquiry form.