Verisona conveyancing is part of bpl solicitors. We have a number of offices located in the North of England and we can support you with your leasehold property purchase.
A leasehold purchase tends to be more complex compared to a freehold property transaction. So it is important to choose the right conveyancer for you.
Leasehold properties tend to have additional charges such as ground rent and service charges. It is important to take these payments into account and ask your estate agent if they are aware of the risks before beginning the sales process as these charges vary in price. In addition to this, if the ground rent is higher than £250 (outside London) the landlord of the lease has the right to obtain the property back due to specific circumstances (such as failure to pay this rent) under the historic ‘Housing Act’ legislation.
Due to the complexity of leasehold properties, the conveyancing tends to take slightly longer then freehold properties. This is because there is a lot more legal information to examine and needing to wait for another party to respond to enquiries (freeholder). At Verisona Conveyancing, our team has a vast amount of knowledge within leasehold properties which will give you confidence and trust with the conveyancing process.
It is important to review your lease. It is a big consideration when purchasing a leasehold property as they can include details that can become costly if not properly considered. When a lease is set up, you are given a set number of years that allows to you to take temporary ownership of the land that property is on, even though the owner has full rights over the actual property itself. If the lease becomes too low, it will decrease the value of the property and it is most likely become unmortgageable due to the risk of losing the property to the freeholder if the lease expires. If you plan to extend the lease, you will need to instruct a solicitor to do so which will be at a cost. In addition to this, the freeholder has the right to charge you a fee to make this extension. However, sometimes leasehold properties fall under share of freehold. This means you will own a share of the freehold and you will have greater control over things such charges and maintenance.
In the lease you might find that there are some clauses that means you have a restriction on how you can use your property. If you plan to rent out the property or use it as a short-term holiday let, you should make an enquiry with the estate agent at the start to see if the lease withholds you from doing so and make sure your solicitor knows your intended actions as well. This will save you time and money.