Unfortunately, having a share of freehold reversion is not all positive.
The downside can sometimes be that you no longer have an independent third party ( other that the courts ) to collect maintenance fees and resolve disputes with neighbours.
In recent months Fridaysmove's Conveyancing in London Team have seen a threefold increase client calls concerning problems in collecting in service charges due form there co-freeholders and neighbours.
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Marry Spaterri of the Conveyancing in London Team at Fridaysmove:
“We find many share of freehold situations were the leaseholders assume management ineffectively because of lack of cooperation from neighbours and not having the expertise to handle all the paperwork. ”
If you are interested in purchasing the freehold reversion for your building then do bear in mind that there are cons as well as the significant pros. Whilst it obviously is appealing to have the destiny of your maintenance, insurance and structure of your building in your own control, and obviously you are unlikely to have to pay for a lease extension, there is a flip side to the coin.
The management of the building takes time and planning and very few tenants have experience in managing a building. Furthermore, there is something to be said about having an independent party, namely a landlord or managing agent, who can take appropriate action against other tenants in the building who have breached the terms of their lease by causing a nuisance, etc. . or alternatively do not pay their service charge. When it comes to owning the freehold please bear in mind that the grass is not always greener.