Solicitors for Selling a Lease-hold property
Leasehold Properties Explained
Selling a property that is leasehold can be slightly more complicated than selling a freehold.
However, it is usually just a case of collecting more paperwork and doing some additional planning.
If you are well prepared and have an experienced conveyancing solicitor on board, selling a leasehold property should be straightforward.
What Is the Difference between Leasehold and Freehold?
Owning a freehold property means you own the property and the land it sits on. Owning a leasehold property means that you own the property for a limited period of time.
If you purchase a property with a leasehold title you will own the property for a specific amount of time and once the lease runs out, the ownership of the property will revert back to the freeholder.
However, this rarely occurs because there is always an option to extend the lease. If you’ve been the leaseholder for two or more years, you have a statutory right to an extension.
Leaseholders pay ground rent and a service charge to the freeholder, often annually, which is used to maintain all communal areas, such as shared gardens or a shared gym.
How Can I Sell a Leasehold Property?
When selling a leasehold property, the lease is transferred to the new leaseholder. The new leaseholder must adhere to the terms that were agreed to in the original lease, including paying the ground rent and service charge.
The general process for selling a leasehold property is similar to selling a freehold, it is just a case of collecting more paperwork and doing some additional planning.
- Firstly, you should consider appointing an estate agent to market and sell your home and appoint a conveyancing solicitor to deal with the legal aspects of the sale
- Once you have accepted an offer, your solicitor will prepare a contract of sale and send it to the prospective buyer and their solicitor. They will also need to send a copy of the lease agreement, a copy of your title, and the freeholder’s title
- The buyer will require a service charge information pack from the property managing agent. You will have to pay a fee for this to be produced. If separate managing agents collect the ground rent and service charge a pack will be required from both agents
- Once the new buyer has all the required information and is happy to complete the sale, the freeholder will be formally notified that the lease has been transferred. To ensure all future ground rent and service charge demands are sent to the buyer
Ground Rent
With certain leasehold properties, the ground rent review clauses can make mortgaging difficult and put potential buyers off.
To get around this, you could extend the lease, even if you have plenty of time left or you can apply to the landlord for a formal Deed of Variation to change the ground rent provisions within the lease.
Major Works
Prior to carrying out any major works the managing agent is required to follow a strict consultation period to advise the leaseholders of the planned works.
If you sell your property during such a period the buyer may require you to pay for the forthcoming works even though they are yet to be completed. This would be a point of negotiation between you and the buyer.
Get in Touch with Us Today
If you’re looking for a lawyer to help you with the sale of your lease hold property, you’ve come to the right place. Our property solicitors have years of experience in selling a lease hold property so you can trust that with us, you’re in the best hands.
Speak to one of our experts today by phoning us on 0333 433 0275 or dropping us an email at hello@homepropertylaw.co.uk.
