Leasehold Property law. Personally delivered.
Leasehold Property law. Personally delivered.
A share of the freehold is an asset and a responsibility. Five things a buyer should establish before exchange, from our London leasehold solicitors.
Reviewed 25 July 2026
A share of the freehold is usually an advantage. It is also a company you are about to become responsible for.
Surprisingly often, they do not. A share that never followed a previous sale leaves the seller unable to transfer what they do not own, and the buyer unable to become a member. It is discovered late, it delays completion, and putting it right requires the co-operation of somebody who left the building years ago.
Check the filing history at Companies House. A company that has not filed a confirmation statement or accounts is heading towards being struck off — and on dissolution its property, including the freehold of your building, vests in the Crown as bona vacantia. Recovering it means restoring the company or buying the freehold back.
Directors must also now verify their identity with Companies House. Existing directors are in a transition period that closes in November 2026, and if you are about to become one, it will apply to you.
Owning a share of the freehold does not lengthen your lease. Many share-of-freehold flats have leases that have been quietly running down for decades because nobody got round to granting new ones. The good news is that extending is an internal decision rather than a negotiation — and it should be on the agenda soon after you move in.
Buildings that have granted new leases piecemeal end up governed by several inconsistent documents. Ask whether the leases in the block match, whether the service charge percentages total 100%, and whether anybody has audited them.
Insurance, repairs, service charge collection, accounts, filings and — in a taller building — building safety duties. In a small block those fall on the leaseholders personally. It is entirely manageable, and it is worth knowing before completion rather than at the first meeting.
We act on share of freehold purchases and can review the company, the leases and the freehold title together rather than in isolation.
This article reflects our understanding of the position on 25 July 2026 and is general information rather than legal advice. The law in this area is changing: take advice on your own circumstances before relying on it.
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