Why are flats in Scotland freehold?

This is because in Scotland, residential properties owned by individuals are owned under freehold, not under leasehold. Leasehold means that someone owns the property, but that the land upon which the property is built is owned by the freeholder.

What is a freehold flat in Scotland?

freehold is where the property is owned outright and is not time-limited. leasehold is where there is an exclusive right to occupy the property for a set period of time. The term of a leasehold interest can vary from the very short (for example, a matter of weeks) to the very long (for example, 999 years).

Why are some flats freehold?

The biggest advantage of buying a freehold flat is that you own your own building and land. In addition, it allows you the freedom to make changes to your exterior without having to get permission from a landlord/property manager or building owner.

Can you get a mortgage for a freehold flat Scotland?

Whether leasehold or share of freehold, it's possible to mortgage a flat, just as you would a house.

Do leasehold properties exist in Scotland?

In Scotland, Scottish law has its own version of freehold property which is known as “feuhold”, and while there are some leasehold properties north of the border it is much less common than in England and Wales.

Property Tenure in Scotland

Is leasehold banned in Scotland?

Legislation passed by the Scottish parliament, including the Abolition of Feudal Tenure (Scotland) Act 2000, and the Tenements (Scotland) Act 2004, effectively brought leasehold to an end in the country.

How did Scotland abolish leasehold?

“However, leasehold abolition began much earlier in Scotland, with the Land Tenure Reform (Scotland) Act 1974. “In 2012, the Scottish Government brought in legislation automatically converting remaining long leases into outright ownership.

Is it worth buying the freehold of my flat?

At 80 years it gets much more expensive to extend the lease and/or buy the freehold, making your home much less valuable and more difficult to sell. Buying the freehold can add value to a lease, particularly to one under or close to 80 years. You and the other leaseholders have the money needed to buy the freehold.

Is it hard to sell a freehold flat?

The problems are down to mortgage lenders. Most of them don't see a freehold flat as good security, a problem to mortgage as well as difficult to sell. In fact, very few lenders will even consider loans against them.

Are freehold flats worth more?

Freehold is often more expensive than leasehold at the outset. Similarly, freehold often applies to houses rather than flats, so they are naturally more expensive.

What are the disadvantages of freehold?

The only disadvantage of freehold properties is that they are more expensive. Since an individual owns both, the land and the property, to have complete control over it, the cost incurred on it increases.

Is a 999 year lease as good as freehold?

How long can a lease be? Newly-created leases can be anything from 99 or 125 years to 999 years. A 999 year lease is effectively as good as freehold, and there can even be some advantages to owning some properties this way, rather than under freehold (see below).

Is it harder to get a mortgage on a freehold flat?

As a result of these problems, it is extremely difficult to get a mortgage on freehold flats.

What are the disadvantages of buying a freehold property?

The disadvantages of a freehold

Freeholds are often more expensive, as you own the land as well as the property. They also usually refer to houses rather than flats, so trying to find a flat available for freehold purchase can be difficult.

Do you pay ground rent in Scotland?

The home owner pays an annual 'ground rent' to the freeholder, and has to ask permission from the freeholder to make alterations or adjustments to the property, such as building a conservatory or changing the windows – often subject to a cost.

Is it better to buy freehold or leasehold?

Cheaper properties: Leasehold properties tend to be cheaper than freehold properties. However, this is due to the risks involved. Less responsibility: The freeholder usually manages maintenance for the building and communal areas and arranges buildings insurance.

Can a freeholder refuse to sell the freehold?

Can a freeholder refuse to sell the freehold? A freeholder can only refuse to sell the freehold if the qualifying requirements are not met. For example, leaseholders may ask if you will sell the freehold to them even if more than 50% of the leaseholders do not wish to participate.

Who is responsible for the roof in a freehold flat?

The freeholder is usually responsible for: repairs to the building's structure, including the roof and guttering, repairs to shared parts of the building, such as lifts and communal stairways, buildings insurance (to protect the entire building from accidents and disasters such as fire or flood).

Do freeholders pay ground rent?

Benefits of having a freehold

deal with the freeholder (often known as the landlord) pay ground rent, services charges or any other landlord charges.

Who owns the freehold of my flat?

As a result, you will have a 'landlord', the freeholder, who owns the land on which the property is built. This can bring with it a host of additional costs, such as maintenance fees and ground rent.

Can I sell my freehold house as leasehold?

Leasehold Options

If you don't want to retain any responsibility for the properties after conversion one option is to sell the apartments as leasehold with a share of the freehold. Maintenance of common areas and other management issues will then become the responsibility of the leaseholders.

How do I sell my freehold flat?

Your freeholder must serve a formal Offer Notice on the leaseholders with the information that that they intend to sell the freehold. They must also give you enough time to consider making an offer. The law states that the Offer Notice has to be served on at least 90% of qualifying leaseholders.

Are all Scottish flats freehold?

When buying a residential property in Scotland, there is no freehold and leasehold distinction. Generally, what you buy in Scotland is 100% yours and you can say everything is 'freehold' in Scotland. In Scotland, once you buy a property, you can usually give a tenancy to someone else so they can occupy it for a rent.

When was leasehold abolished in Scotland?

Let's take a look at the situation in Scotland where, in 2012, the Scottish Government brought in legislation that abolished the traditional leasehold model of ownership, being replaced by a residential-led model of ownership like commonhold.

Are tenements freehold?

A tenement is any land held for a freehold or leasehold estate. It is a phrase commonly used in easement to refer to a piece of land.