We know that buying a home is quite expensive. However, you can still have a home for yourself at a lower price by purchasing a leasehold property. Leasehold simply means that you will lease the property from the freeholder so you can use the house for the long term. While you do not technically own the property, you can stay at the property for as long as 90 to 999 years.
If you decide to buy a flat or leasehold property, you should learn more about leasehold conveyancing, as this will help you make an informed decision while you’re in the process. Read on as we will discuss everything you need to know about leasehold conveyancing in this two-part post.
What Is Leasehold Conveyancing?
First, let’s define what leasehold conveyancing is. Leasehold conveyancing is the legal process you go through before you can buy the leasehold property. Generally, it’s more time-consuming than buying a property as a freeholder. It requires additional work to understand and review the terms and conditions of the lease from the freeholder.
You need a trusted solicitor to help you with leasehold conveyancing matters because they are the ones who will deal with the landlord or the management company and the vendor’s solicitor.
How Can You Know if the Property Is a Leasehold?
Most leasehold properties are flat, and some are old terraced houses and newly built houses. You can know if the property is a leasehold by looking at the estate agent’s marketing materials. The tenure is usually stated there, but if not, ask your solicitor or conveyancer to confirm the property’s position before you agree to purchase.
What Does a Lease Mean?
A lease is a contract that exists between the leaseholder and the freeholder. It’s the first thing that your solicitor or conveyancer will ask from the seller’s solicitor; it’s the document that will give you the right to occupy the property for a set period subject to specific conditions. All conditions and restrictions will be written on the lease, so ensure that your solicitor will review the lease and help you understand your rights and obligations as a leaseholder.
Your solicitor must provide you with a summary of the main provisions included in the lease. This summary is called the report on title. Usually, the report on title states your obligations about paying ground rent, service charges, future work and administration charges.
The lease will also explain the responsibilities of the freeholder. The freeholder’s responsibility usually includes the maintenance of the building, making sure the exterior and common areas are in good working order and arrangement of building insurance.
Knowing about leasehold conveyancing is crucial because it is a complex process that requires adequate knowledge. If you have no idea what leasehold conveyancing is, you may face a problem buying a leasehold property, and you will not be able to know if you are being treated fair and getting the benefit of the lease contract properly. While your solicitor can guide you through the process, it’s still handy if you can understand everything completely. Hopefully, this guide has helped you better understand leasehold conveyancing, so you’ll be more prepared before you agree to purchase leasehold property.
Conveyancing Store can help buyers like you make better, more informed decisions with the backing of advice from our trusted team of conveyancing solicitors. We are an exclusive platform that facilitates buyers to get conveyancing fees comparison instantly while assisting them in determining and meeting the legal requirements of buying a property. Get an online quote and schedule a call to discuss your matters with us today!