Any property that is put up for sale falls under two main categories; Freehold and Leasehold. Freehold properties together with the land they built upon are owned outright when the purchase comes to completion.
Purchasing a leasehold property boils down to you having to use the property for a certain period indicated in the lease. The lease may have been setup for 100 years originally. However, you get the right to use the property for the number of years remaining in the lease during the time you purchase the property.
The instance the lease expires, full ownership along with all the rights to the property and the land revert to the freehold owner. The longer the remainder lease term, the more valuable the leasehold property is.
Purchasing a leasehold property is a process that takes a while longer. It is a process that attracts higher legal fees as opposed to buying a freehold property. Mentioned below are a variety of reasons why this happens:
Examining The Lease
The property solicitor you pick to oversee the leasehold will have to examine it thoroughly. Please note that the lease is the documents that outlay all critical info. It requires to be known by you the buyer, the mortgage lender, and the freeholder of the land.
The lease carries important info relating to the term of the lease as well as any covenants placed on the freeholder or the leaseholder. Remember one thing, a covenant is a legal obligation. Case in point; a covenant is needing the freeholder to maintain public areas joined to a leasehold flat.
The lease is a complex document that is full of details. It will be a while for your appointed conveyancing solicitor to examine it entirely. It is to ensure that the details held in the lease document are satisfactory.
Handling Third Parties
During the conveyancing process of the leasehold property, your appointed solicitor will need to handle extra parties not involved in the freehold transaction.
Your conveyancer will be required to figure out who the freeholder. It is since they are much likely to have responsibilities ascertained in the lease.
They may as well need to grant a license to sell. Your solicitor can draw this up and will get the appropriate signatures. However, this is an action that takes time and calls for hard work. In addition to this, a lot of leasehold properties are properly maintained by management firms.
In such incidences, the freeholder has the likelihood of being hands off. They will have very limited info in regard to the running of the property. Inquiries raised with the managing company for a certain amount of details that you require to know. The info requested for at this juncture.
Since the managing form doesn’t have a stake in the property sale, they are most times unmotivated to respond to requests for info expeditiously. Delays often arise mainly from management agencies involved with leasehold property purchase.
Mortgage Financier’s Requirements
Your appointed leasehold conveyancing solicitor doesn’t only work for you, he/she also works for your mortgage financier. As your appointed solicitor examines the lease documents, he/she will have to ensure that there is nothing in the document that breaches the financier’s requirements.
Your appointed lawyer has the duty of reporting anything of concern to your financier. It is an action that leads to further delays attributed to your financier either amending or pulling away from the offer.
Building insurance is in most cases provided by the freeholder selling the lease property. The individual that buys the lease will in most instances have to pay a certain share of the cost. Your conveyancing solicitor investigates building insurance policy contracts. It is to ensure that it meets the financier’s threshold.
Compare Leasehold Property Solicitors
Fortunately for you, our online site has made it a simple affair to compare leasehold property solicitor based in the United Kingdom online. Select and click services you need at the top tabs and insert details for your property.
This way, you take a good look at all lease conveyancing solicitors that will do the process on your behalf. The instance that you settle upon one that suits your needs click on them and instruct them from then on.
You will have to fill out further details that will be sent out to the conveyancing company instantly. The company will call you back and together you will go through the online process. They will inform you of what you need to the safest, simplest and quickest way to complete the transaction.