# Share of freehold

An arrangement in which the leaseholders of a building together own its freehold, usually through a company in which each flat owner is a member or shareholder, while each still holds a lease of their own flat.

Also called: share of the freehold, SOF.

Estate agents advertise flats as "share of freehold", but legally the buyer still owns a **lease**. What they also get is a share in the company (or, in some small buildings, a place among the individuals) that owns the freehold.

## What it means in practice

- The leaseholders, through the company, are the **landlord**. They collect the service charge, insure and repair the building and enforce the leases against each other.
- The company's directors are usually volunteers from among the flat owners.
- The members can agree to extend leases, often for little or no premium, because they are dealing with themselves.

## The same rules still apply

Being the landlord means the company must follow the same service-charge rules as any other landlord: proper demands, [Section 20](https://runyourblock.co.uk/glossary/section-20-consultation) consultation, the [18-month rule](https://runyourblock.co.uk/glossary/18-month-rule) and holding the money on trust. Most disputes in share-of-freehold buildings are between neighbours who are also co-directors, so clear records and decisions matter even more.

## Related terms

- [Freehold company](https://runyourblock.co.uk/glossary/freehold-company)
- [Collective enfranchisement](https://runyourblock.co.uk/glossary/collective-enfranchisement)
- [Leaseholder](https://runyourblock.co.uk/glossary/leaseholder)
- [Residents' management company (RMC)](https://runyourblock.co.uk/glossary/residents-management-company)

## Sources

- [GOV.UK: Leasehold property](https://www.gov.uk/leasehold-property)
- [Companies House: About flat management companies, RTM companies and commonhold associations](https://www.gov.uk/government/publications/flat-management-and-right-to-manage-rtm-companies/about-flat-management-companies-rtm-companies-and-commonhold-associations)

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Updated 22 October 2026. Source: https://runyourblock.co.uk/glossary/share-of-freehold