Freehold Flat
A freehold flat has the outright ownership of the land on which it is built. Freehold flats are notoriously difficult to get a mortgage on because, if they do not enefit from some sort of legal contract from the owner of any supporting or adjacent property, major difficulties can be experienced in the event of anything affecting them tructurally (e.g. subsidence). Ownership of a freehold flat should not be confused with a situation when one or more leaseholders in a block of flats acquires the freehold
interest in the property and it is sold with the benefit of a share in the freehold. In this situation the individual leases on the flats should still be left in place in order to provide the necessary legal agreements, however the leaseholders may grant themselves extensions on the lease as they wish. You should carefully weigh up whether you ought to
buy a freehold flat because they are considered difficult to sell on.
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