2026 RICS Level 2 Pricing Guide
What Does Share of Freehold Mean?
If you own a flat in London, there’s a good chance the word “freehold” has come up in conversation, on a solicitor’s letter, or in a property listing. But what it actually means, and whether having a share of one makes a difference to your purchase, isn’t always obvious.
Who We Are
Somerset & Sinclair is a RICS-regulated chartered surveying firm based in Covent Garden, London. We work with flat buyers, leaseholders, and property investors across Greater London and the Home Counties, helping them understand exactly what they’re buying before they commit.
Our team brings more than 25 years of combined experience to every instruction. Lead surveyor Ateeb Khan MRICS is a RICS Registered Valuer and Chartered Surveyor who has advised on hundreds of leasehold and share of freehold transactions across London. When clients come to us with a freehold question, it’s not something we look up. It’s something we know.
If you’re trying to understand whether a share of freehold property is right for you, or what it means for the survey and valuation, you’re in the right place. This guide walks through the essentials.
The Essentials
Understanding Share of Freehold
What Does Share of Freehold Actually Mean?
In England and Wales, most flats are sold as leasehold. You own the flat for a set number of years under a lease, but the land and building it sits on is owned by a freeholder, usually a private landlord.
A share of freehold is different. Here, the flat owners collectively own the freehold of the building between them, usually through a company set up for that purpose. If there are four flats in the building, each owner typically holds a 25% share. You still have a lease on your individual flat, but you also co-own the building and the land it stands on.
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How Is It Different from a Standard Leasehold?
With a pure leasehold, your relationship is with the freeholder. You pay ground rent, you need their permission for certain works, and if the lease runs short, you're at their mercy for an extension.
With a share of freehold, you and your fellow owners are the freeholder. That changes the dynamic considerably. You can usually extend leases at a much lower cost, you have more control over building management and maintenance, and you're not subject to the same kind of escalating ground rent demands that have affected so many standard leaseholders in recent years.
Does a Share of Freehold Make the Property More Valuable?
Generally, yes. Buyers tend to prefer share of freehold properties because of the added security and control. Mortgage lenders also tend to view them more favourably than short-lease or problematic leasehold situations.
That said, the value depends heavily on the lease length remaining on the individual flat, the quality of the freehold company's management, and the condition of the building. A share of freehold doesn't automatically mean fewer problems. It means you share responsibility for those problems.
What Are the Responsibilities That Come With It?
When you own a share of the freehold, you also share responsibility for the building. That means contributing to major works, buildings insurance, maintenance decisions, and service charge management. The practical experience varies a lot between buildings.
In well-run buildings with clear agreements, this is rarely a problem. In poorly managed ones, disputes between flat owners over costs or decisions can become a real headache. A chartered surveyor can help you understand what condition the building is in and flag any warning signs before you commit.
Does a Share of Freehold Need Surveying Differently?
In terms of the physical inspection, a RICS Level 2 survey follows the same process whether the property is leasehold or share of freehold. The surveyor assesses the structure, fabric, and condition of the flat and the elements of the building that affect it.
What changes is the context around the report. With a share of freehold, there are additional legal and management questions that sit alongside the survey findings. Your solicitor handles the legal side, but a surveyor who understands leasehold and freehold structures can give you a more informed picture of how survey findings might translate into cost and responsibility.
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Why Choose Us
Why Clients Choose Somerset & Sinclair
RICS-Regulated and Registered Valuer Status.
Ateeb Khan MRICS is a RICS Registered Valuer. For share of freehold purchases that also require a formal valuation, this is the credential that matters. Not every surveying firm can offer this in-house.
London Expertise.
We work across all 32 London boroughs, with particular depth in the kind of period conversions and purpose-built blocks where share of freehold is most common. We know these properties.
25+ Years Combined Experience.
Our team has advised on leasehold, share of freehold, and freehold properties across the capital for over two decades. We've seen the full range of situations these structures can create.
47 Five-Star Google Reviews.
Our clients write reviews because we earn them. We explain findings in plain terms, we're available when questions arise, and we don't disappear once the report is delivered.
Reports Within Five Working Days.
We know that property transactions move quickly. Our turnaround is consistently five working days, and we'll let you know if anything changes.
What Our Clients Say
Our clients range from first-time buyers buying into a conversion for the first time to experienced investors managing portfolio decisions. Here’s what some of them have shared.
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Not Sure Whether a Share of Freehold Is Right for You?
Every freehold situation is different. If you want a professional view before you make a decision, we can help. Our surveyors work across London and can turn around a report within five working days.
Frequently Asked Questions
What does share of freehold mean when buying a flat?
Share of freehold means that the owners of the flats in a building collectively own the freehold of that building, usually through a limited company. Each flat owner holds a share of that company, giving them co-ownership of the land and the building itself. You still hold a lease on your individual flat, but you also have a say in how the building is managed and maintained. This is different from a standard leasehold, where the building and land are owned by a separate landlord.
Is a share of freehold better than a leasehold?
A share of freehold is generally considered more favourable than a standard long leasehold, particularly when the leasehold alternative involves escalating ground rents, a short lease, or a difficult freeholder. With a share of freehold, you and your fellow owners control the building, manage the service charge, and can extend leases at relatively low cost. That said, it brings responsibilities too, including shared decision-making and joint liability for building costs. The quality of the freehold arrangement varies between buildings.
Can a share of freehold flat get a mortgage?
Yes. Share of freehold properties are generally acceptable to mortgage lenders, provided the lease on the individual flat has sufficient length remaining, usually at least 70 to 85 years depending on the lender. The lender will want to see that the freehold company is properly constituted and that the lease terms are standard. If the lease is short, you’ll need to factor in the cost and process of extending it, which as a freeholder you can do more easily than a standard leaseholder.
Do I need a survey if I'm buying a share of freehold flat?
Yes. A RICS Level 2 or Level 3 survey is just as important for a share of freehold flat as for any other property. The fact that you share ownership of the building makes it more important, not less, because any defects in the structure or fabric could become your shared financial responsibility from the day of completion. A survey will identify condition issues, flag items that may require work, and give you a clearer picture of what you’re taking on.
What is a freehold company and how does it work?
A freehold company, often called a Right to Manage company or a freehold management company, is a limited company set up to hold the freehold of a building on behalf of the flat owners. Each flat owner holds shares in the company. The company is responsible for buildings insurance, maintenance of common areas, managing service charges, and making decisions about the building. In practice, the flat owners manage it collectively, either themselves or through a managing agent.
How long is the lease on a share of freehold property?
The individual flat will still have a lease, and that lease will have a specific length attached to it. Many share of freehold properties have relatively short leases on paper because the owners can extend them cheaply and easily since they control the freehold. However, it’s important to check the actual lease length before you buy. If the lease is below around 80 years, it may affect mortgage options and the cost of extension, even within a share of freehold structure.
What are the downsides of a share of freehold?
The main challenges are the shared responsibilities. Decisions about maintenance, major works, and service charges require agreement between all owners, and disagreements can arise. If one owner is unwilling to contribute to necessary works, that can create complications. The quality of the legal documentation underpinning the freehold company also matters, and it’s worth having a solicitor review the articles of association and lease terms carefully before exchange.
Does Somerset & Sinclair carry out surveys on share of freehold flats?
Yes. We carry out RICS Level 2 and Level 3 surveys on flats across Greater London, including share of freehold properties. Our lead surveyor Ateeb Khan MRICS is a Chartered Surveyor and RICS Registered Valuer with extensive experience of leasehold and freehold structures in London. If you have specific questions about a property’s freehold arrangement alongside the physical inspection, we can discuss that as part of the instruction.