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    • Property-a-holics

    Buying with the freehold included....

    Replies 1 Views 197 Activity 15 days ago Users 2
    Go to first unread post
    MikeSmith 29 Nov at 16:07

    Hi guys, got a question. Interesting in doing a deal to buy a commercial property (a shop) that is underneath a large HMO that is also being sold. The vendor is intending to split up the title into two parts with the shop owning the freehold. So if I buy it I will become the freeholder and I've never really done this before I would really like to know.

    - Could the proposed title split absolve the shop downstairs of repair to the upstairs window and roof upstairs? Which are entirely to the benefit of the flat upstairs? Or would it be on a % basis of the service charge?

    - I have no problem with administering the freehold (I do a few management deals anyway) but what could I charge for this?

    - What would you do in a scenario like this when splitting the title to make it fair??  (It has not been split yet so in theory could negotiate terms)

    Any tips or advise would be greatly appreciated.

    Mike

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    LondonSW 30 Nov at 09:58

    Mike, usually if you are not a Management Company you cannot really charge for managing the Freehold (usually inserted in the lease); all the rest depending really on how the lease is going to be draw, and you need careful professional advise for that. I am Freeholder of a mix commercial/residential and I have appointed a Managing Agent for the freehold, as the leases allow me because there are rules quite strict on ground rent collection, service charge, maintenance etc etc that I was worried to ignore etc etc

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