{"id":29812,"date":"2026-08-05T11:48:08","date_gmt":"2026-08-05T10:48:08","guid":{"rendered":"https:\/\/www.propertysurveying.co.uk\/newsletter\/?page_id=29812"},"modified":"2026-08-05T11:48:18","modified_gmt":"2026-08-05T10:48:18","slug":"caveat-emptor-buyers-beware-of-fleecehold","status":"publish","type":"page","link":"https:\/\/www.propertysurveying.co.uk\/newsletter\/?page_id=29812","title":{"rendered":"Caveat Emptor Buyer’s Beware of Fleecehold!"},"content":{"rendered":"

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Caveat Emptor: Buyers Beware of Fleecehold!\u00a0<\/strong><\/p>\n

The need for the services of a specialist property solicitor has never been greater.<\/p>\n

The term \u2018fleecehold\u2019 has been coined to cover a rising phenomenon in house purchasing.\u00a0 The situation has arisen, particularly, with the rise of new build estates where private companies have retained the management rights.<\/p>\n

Purchasers are buying what they think is the freehold to a property, only to discover stringent and costly clauses in that freehold.<\/p>\n

Traditionally, properties have been sold as either Freehold or Leasehold.\u00a0 The punning so-called \u2018Fleecehold\u2019 is a mongrel hybrid and buyers need to look carefully at the small print.<\/p>\n

Definition of Terms<\/strong><\/p>\n

Freehold:\"\"<\/strong><\/p>\n

The buyer purchases ownership of the property and of the land it is built on.\u00a0 The buyer is responsible for all maintenance and repair and has autonomy over the property.<\/p>\n

Leasehold:<\/strong><\/p>\n

The buyer owns the property but not the land on which it stands.\u00a0 This is particularly common with flats and apartments.\u00a0 The landowner has the right to charge the leaseholder fees to cover costs for such things as maintenance of communal areas, lifts, garden space, walkways etc.\u00a0 These charges, along with terms and conditions of residence and purchaser\u2019s rights, are specified in the purchaser\u2019s lease.\u00a0 The potential cost implications should be carefully considered when taking on a property.<\/p>\n

\u2018Fleecehold\u2019<\/strong>:\"\"<\/p>\n

This looks like freehold but although the owner purchases both the land and the\u00a0property, the deeds specify the right for, typically, a third party such as a property management company to impose fees or service charges for specific maintenance works.\u00a0 These might, as for a leaseholder, include maintenance of communal areas such as parks, playgrounds and private roads.\u00a0 To all intents and purposes, a management fee.<\/p>\n

The devil is in the detail \u2013 and the inability for the \u2018fleeceholder\u2019 to control increases in the fees to which they are contractually committed.<\/p>\n

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Property Management Companies<\/strong><\/p>\n

As the name suggests, originally, these were set up on behalf of property owners to:<\/p>\n