Q: What is a 'Share of Freehold'?

Share of Freehold means you own the flat (Leasehold) AND a share of the building/land (Freehold). This gives you control over management and service charges. It is generally more valuable than a standard Leasehold.

Q: Are London service charges capped?

No. There is no legal cap on service charges. In some new luxury developments, fees have risen to over £10 per square foot per year. Always check the 'sinking fund' history before buying.

Question 1

What is the new Leasehold Reform Act?

Accepted Answer

The Leasehold and Freehold Reform Act 2024 makes it cheaper and easier for leaseholders to extend their lease (up to 990 years) and buy their freehold. It effectively abolishes 'marriage value', which used to make extending short leases (<80 years) incredibly expensive.

Question 2

What is a 'Share of Freehold'?

Accepted Answer

Share of Freehold means you own the flat (Leasehold) AND a share of the building/land (Freehold). This gives you control over management and service charges. It is generally more valuable than a standard Leasehold.

Question 3

Are London service charges capped?

Accepted Answer

No. There is no legal cap on service charges. In some new luxury developments, fees have risen to over £10 per square foot per year. Always check the 'sinking fund' history before buying.

London: Leasehold Reform or Service Charge Trap?