Share of freehold is increasingly common in UK flat buildings. Understand what it means in practice, the significant advantages over standard leasehold, and how to acquire it.
When a property is described as having a "share of freehold," the flat owner also holds a share in the company that owns the freehold of the whole building. Each flat owner holds a stake in a Residents' Management Company (RMC) that collectively owns the freehold — eliminating the adversarial freeholder and leaseholder relationship entirely.
A flat with share of freehold and a 72-year lease can extend to 999 years for as little as £800 in legal fees — compared to £15,000–£35,000 or more for a statutory extension when dealing with a commercial freeholder.
All shareholders must agree on major decisions, which can be difficult when owners have different priorities. Non-resident investors may be less engaged with maintenance decisions. Disputes must be resolved internally or through the Tribunal. These challenges are manageable but should be understood before pursuing.
The route is collective enfranchisement — at least 50% of flat owners must participate. The process typically takes 9–18 months. Once the freehold is acquired, each participating leaseholder receives a share in the freehold company.
Share of freehold means you own a proportion of the freehold title to the building in addition to your leasehold flat. Typically, the freehold is owned by a company whose shares are held by the individual flat owners — so each leaseholder owns shares in the freehold-owning company and therefore a share of the freehold. You remain a leaseholder in terms of your flat, but the freeholder above you is now your own company.
The main advantages are: you can extend your lease to 999 years at minimal cost (just solicitor fees — no premium to yourself), you control service charges and building management, there is no external freeholder to escalate ground rent, and your property is more attractive to buyers (most buyers and mortgage lenders prefer share of freehold). It is widely considered the gold standard for flat ownership in England and Wales.
No. Share of freehold means you hold a share in the freehold-owning company while remaining a leaseholder for your flat. Commonhold is a separate form of ownership where each unit is owned outright (like fee simple) and there is no lease at all — just a commonhold community statement. Commonhold was introduced in 2002 but has barely been used. The government has proposed making commonhold the default for new build flats in future.
Your solicitor checks the Land Registry title when conducting searches. Share of freehold shows up as the leaseholder also being a shareholder in (or director of) the freehold-owning company. Estate agents sometimes list properties as share of freehold but this needs to be verified. Ask to see the freehold title and the company structure — confirm that all or most flat owners participate.
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