Lawyers for Buying an Apartment
Buying An Apartment? Get Help From Our Expert Conveyancing Team
There is a lot to consider when buying an apartment or a flat and it can often be quite daunting.
At Home Property Law our specialist leasehold lawyers will walk you through the details of your apartment purchase and your mortgage, explaining the ins and outs without using jargon.
We don’t want you to feel in the dark about any aspect of your purchase and our team is always on hand, happy to offer expert advice and discuss any queries with you – large or small!
What Is the Conveyancing Process When Buying an Apartment?
There are six steps in the conveyancing process when purchasing an apartment.
Step 1 – Instruct a Conveyancing Solicitor
Once you’ve found the apartment you’d like the purchase and have had an offer formally accepted, you will need to instruct the services of a conveyancing solicitor to legally complete the sale.
Some buyers will obtain quotes and instruct their solicitor(s) before they find a property to buy.
Often this strengthens their negotiating position when submitting offers for their chosen property.
Step 2 – Arrange a Property Survey
Although it is not legally required, it is a wise idea to have an independent property survey conducted.
The survey report will highlight any major faults with the property, making you aware of potentially costly repairs and allowing you the opportunity before the exchange to renegotiate the purchase price with the estate agent and seller.
Step 3 – Conduct Property Searches
At this stage, your conveyancing solicitor will carry out property searches to find out vital information on the property and any associated risks, before exchanging contracts with the seller.
Step 4 – Exchanging the Contract
Before the contract is exchanged your conveyancing solicitor will work with you to identify and resolve any issues before you are legally bound to complete the purchase.
Step 5 – Purchase Completion
The day when the sale is finalised and the property is legally transferred to you is known as completion day.
Your solicitor will pay the balance of the sale price (minus the deposit already paid) to the seller, and obtain the signed Transfer Deed.
Step 6 – Post Completion
In the final stage of the conveyancing process your solicitor will arrange for any Stamp Duty (if applicable) to be paid to Revenue and Customs.
They will also register you as the new owner of the property with the HM Land Registry, as soon as the completion as possible (this is dependent upon when the seller’s signed documents are received).
Finally, your solicitor will register your purchase with the new landlord to ensure all ground rent and service charge demands and any other relevant communication is sent to you.
For more information, read our comprehensive guide to buying a property.
What Are the Advantages of Buying an Apartment?
- Increased security – this applies to upper-floor apartments only
- Usually much cheaper to purchase than a house of a similar floor area
- Lower property values result in a lower council tax banding
- Additional facilities may be provided for example a swimming pool in the complex
- No garden to maintain and no responsibility for organising building maintenance
- Ability to live in an area like a city centre where owning a house would be prohibitively expensive
- More social contact with neighbours
What Additional Costs Are Associated with Buying an Apartment?
If you opt for an apartment as opposed to a house, your initial purchase costs will be lower.
However, you will need to pay ground rent and service charges which you don’t have to pay with a house.
Buying a house means you have a higher potential for capital growth in the long run, but it is typically a larger investment with high initial costs – including many ’hidden’ extra costs associated with buying a house.
What Is Ground Rent and How Much Is It?
Ground rent is a nominal rent for the land on which an apartment is built and can vary quite substantially in value.
Ground rent is paid to the freeholder, who is the owner of the land.
Freeholders have the right to request payment of the ground rent going back six years with responsibility for payment resting with the current owner of the lease. Failure to pay ground rent could result in forfeiture of the lease.
Watch out for any properties being sold with a ground rent review clause in the lease, this may mean ground rents will rise substantially in the years to come and could even mean the home is impossible to sell or remortgage.
What Is Service Charge and How Much Is It?
Service charges are calculated according to each owner’s share of the building or development.
The freeholder provides building insurance, but you may be required to have third-party insurance for any damage you may be responsible for to other apartments as a result of a water leak or fire.
Service charges can be billed monthly, quarterly, or biannually and will be adjusted at the end of the year when the actual expenditure is known and the annual accounts have been produced.
Service charges vary considerably and can run to thousands of pounds, especially for luxury developments with several amenities. Service charges can include the following:
- Car park enforcement
- Communal car park (gates, lighting cameras)
- Entry phone system
- Fire alarm and fire equipment
- Landlord electricity and water utility bills
- Lift maintenance and safety inspections
- TV aerials and satellite system
- Buildings insurance
- Management administration fees
- Accountancy fees
- Future maintenance fund for major repairs
- Cleaning of communal areas including roads and pathways
- Landscape garden maintenance and grass cutting
- Membership and upkeep of communal facilities such as gym and/or swimming pool
- Caretakers and porters
Reach Out to Our Expert Buying An Apartment Team
Our conveyancers help individuals, couples and families buy their new homes every day.
We’re with you every step of the way, from pre-contract right through to land registry and completion and it’s our job to make the whole process as smooth and stress-free as possible. We’ve supported our clients in buying a wide range of properties – from rural, urban, leasehold, freehold and new builds to listed properties.
We have also built excellent relationships with industry contacts, such as:
- Surveyors
- Estate agents
- Brokers
- Accountants
- Mortgage lenders
- Search provider
- Other solicitors
No matter the stage of your buying journey, we can help. Get in touch with one of our experts today by calling us on 0333 433 0275 or send us an email at hello@homepropertylaw.co.uk.
