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joannem1965, Barrister
Category: Property Law
Satisfied Customers: 264
Experience:  I am a solicitor
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how do I change my freehold flat into leasehold please? What

Customer Question

how do I change my freehold flat into leasehold please? What are the advantages and how expensive is it?
Submitted: 4 years ago.
Category: Property Law
Expert:  leanne-jones replied 4 years ago.
Hello - my name is Leanne and it will be my pleasure to assist you today.

You need to be able to sell the freehold to someone.

This is where someone buys the land itself and then leases you the property. You can sell the freehold through an estate agent. The agents fees will depend on the value of the property - so always make sure you get 3 quotes to satisfy yourself you are getting the best deal.

The process itself is straight forward - you advertise the freehold and someone buys it. Clearly once it is brought there will be a legal cost to transfer it to leasehold and you also be liable for annual ground rent and any service charges.

These fees depend. Ground rent is not normally that expensive, a few hundred £. But your service charge can vary.

I hope this helps you and if there is anything you need to know, please let me know. Leanne.

Expert:  joannem1965 replied 4 years ago.
Hi there, I'm sorry but the previous expert has misled you. There's no need whatsoever to advertise the freehold for sale to a 3rd party. A freehold flat is un-sellable and un-mortgageable unless you live in Scotland (predominantly Edinburgh or Glasgow) or Scarborough. I can understand therefore why you want to convert it to leasehold.The most common reason this comes about is because a property has been converted into flats and the person who owns the property created a leasehold flat out of another part of the property but didn’t convert their own to a leasehold.Depending on the make-up of the building, the easiest way would normally be to create a management company and then to transfer the freehold into the management company.You own a share of the freehold management company and the lease which you created.You would also need to transfer the freehold of the other flat (if that is how this came about) into the management company.Let me tell you now that it is not a simple do it yourself process and the solicitor will probably charge at least £2000.Is there any way that I can assist you further?