dave2003

In my ignorance I assumed that buying a flat (apartment) would be the same as in the U.S. and Canada-where such apartments are held in a strata corporation or condominium. Owner occupiers there generally own the "inside" of their unit; the building structure, common areas, mechanical, electrical, heating and hot water, and the land are held by the owners in proportion to a ratio based on square footage. Real property rights.


The buildings are managed mostly by a management company, appointed by the condominium board of directors, who are elected by the unit owners. Simple really, can't understand why the U.K. sticks by what I regard as an outdated system.


Interesting that you should mention also the Leasehold Reform Act, which gives leaseholders some rights to purchase an extension on their lease. An acquaintance of mine inherited a leasehold apartment, with 67 years remaining on the lease. A potential purchaser would likely not get a mortgage on a lease less than 85 years, so he approached the freeholder and asked the price of an extension to 125 years-40,000 pounds, plus thousands more for the managing agents and lawyers. A realtor priced the unit at 137,000 pounds with a lease of 125 years.

Anyway, I am slowly getting unbent over the shock of it all.

Editha

This topic has come up before a couple of times. It is increasingly common with new developments to offer a share of the freehold with the lease. This creates something similar to the American condominium described by Dave 2003.

Even if the freehold is not already owned by the tenants, the Leasehold Reform Act 2002 gives the right to them to club together to buy it. There is a good explanation of the procedure and the pros and cons on Money Saving Expert:Buying a freehold: step-by-step guide - MoneySavingExpert