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Holiday Let

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Author Topic: Holiday Let  (Read 71 times)
Newbie
Posts: 4

I like property

« on: September 28, 2021, 05:46:23 PM »

Iím thinking of buying a holiday let. It is one of 4 purpose built flats. The current owner owns all 4 and holds the freehold. He will be selling to more than one person so says they will all become leasehold.
Would this ring alarm bells with anyone? Is owning a share of the freehold a better option to ask for?
Thank u
Global Moderator
Hero Member
Posts: 4299

Abuse Officer

« Reply #1 on: September 29, 2021, 09:29:40 AM »

Yes.

Stay away from Leasehold under all circumstances...that would be my view. While it may be a worst-case-scenario, Leaseholders can become liable for costs they simply have no control over. While that's [much] less likely in a smaller development like this it is the case than many Leaseholders have seen costs spiral out of control while others make decisions on their behalf. At the end of the day it's all about retaining control of your own destiny. I am never getting in Leasehold again... that's just a decision I've made. I live in a part of the country where Leasehold seems more common than many other areas, including for self-contained houses.

A share of Freehold may still mean you are a Leaseholder, so be careful. I have seen this set-up too... where a Management Company is formed and all owners become Directors of the Company (a Company that does nothing, but still needs to report annual to HMRC and Companies House)... just be very careful... and don't get into a situation with your eyes closed. Be skeptical and wary of anything you are told.
Global Moderator
Hero Member
Posts: 1351

I like property

« Reply #2 on: September 29, 2021, 10:38:18 AM »

Another one here who would never consider leasehold again.Even if you got a share of the freehold,a whole new world of pain will open up to you,not just the red tape of govt.but the other freeholders and their funny little ways.
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