Law firm sees 30% jump in demand for freehold purchases

The residential property team at Bury and Bolton-based law firm Clough & Willis has seen a 30% year-on-year increase in the demand for share of freehold and freehold purchase transactions from clients.

Much of this is being driven by high-profile cases that have seen some tenants’ ground rents double in a matter of years which have, in turn, affected the re-sale values of their homes.

Properties have included both houses and flats across the North West.

According to Lorraine Stratton-Webb – head of the residential property team at Clough and Willis – there are various reasons fuelling this surge in demand.

Lorraine said: “A lot of tenants have been spooked by the horror stories reported in the media, but there’s also a general awareness of the benefits that owning your own freehold or share of freehold can bring and people are acting on that knowledge.

“For example, you control service charges if they are applicable, there is no ground rent to pay, fewer conditions such as having pets apply, and it can add value to your home.”

She added: “However, on the flip side, it can be costly as it takes time to sort out and – if you live in a flat – all residents need to work together and co-operate to make it a success.

“The key thing is to make sure it’s the right option for your own circumstances and to take an educated and pragmatic approach.”

Other reasons behind this demand include tenants not liking the fact that they need to obtain consent to alter their properties from their landlord; people just preferring to have the freehold, or share of freehold, for peace of mind; and if the remaining years on a lease makes the property unsaleable as mortgage companies require a certain amount of years to be remaining otherwise they will not lend.