Selling a leasehold property

Knowing your lease details

When selling a leasehold property, you will have a lease. A lease is a document that sets out the rules which governs your use of a property. You will need to know how many years remain and if there are any stipulations that are important to tell your estate agent so they can give you an accurate sales figure and marketing description.

Knowing when to extend your lease for a leasehold sale

When selling a leasehold property, the lease length might become an expensive issue. If you lease is considered low, your property might be valued significantly under the market value. This is normally the case as it can be very expensive to extend the lease which could potentially make the property unmortgagable. It is important to seek advice before selling. If you are unable to pay for the lease extension but find a buyer who can, you are able to start the process for your buyer as they have to be registered as the owner with Land Registry for at least two years. At Verisona Conveyancing we are able to help you with your lease extensions.

Having informal/verbal agreements with the freeholder

It is important to make sure all agreements with your freeholder are legally binding, as if the lease says there is a different agreement, any potential buyer will have to follow the stipulations within this document over an informal conversation.

Knowing the additional charges within your lease

Most leasehold properties have some form of charges. These can include ground rent, service charges and maintenance. As a selling you have an obligation to be as transparent as possible and these additional costs will need to be consider by your buyer.