Most people prefer buying a leasehold property because it is usually cheaper than buying a property and the land it’s on. Buying a leasehold property requires leasehold conveyancing. If this is your first time hearing about the term, leasehold conveyancing is the legal process you go through before you can buy a leasehold property from a freeholder. You can learn the basics of leasehold conveyancing by reading the first part of our blog.
In this article, you can find out more about leasehold conveyancing and the things you need to be aware of if you buy a home leasehold.
What Is The Most Crucial Thing You Need To Know Before Buying A Leasehold Property?
As a leasehold property buyer, the first thing you must determine is how much of the lease is left to run, as this will significantly affect your ability to get a mortgage. You must note that lenders don’t give mortgages on properties that have less than 70 years left on the lease. Ensure that your solicitor will get this information before you sign any contract from the freeholder. You can also find this information on the first few pages of your lease document.
If the lease has few remaining years left, you will have a hard time selling the property, and you cannot increase the property’s value. Moreover, you will spend more if you decide to extend it. If less than 80 years are left on the lease, the extension will definitely become more expensive.
What Should Your Solicitor Check?
Aside from finding out about the remaining term of the lease, your solicitor or conveyancer should also check the following details from the freeholder:
- The liable charges you have as a leaseholder, the amount of these charges, and when these payments are due
- Any planned major works that could affect the value of your home and your enjoyment of it
- The balance of the service charge accounts (must be included at the end of year statement)
- Any sinking fund (what the balance is and if it’s sufficient to cover any planned works)
- The boundaries of your leasehold property.
- The restrictions on what you can do to your property
How Much Does Leasehold Conveyancing Cost?
While buying a leasehold property is cheaper, conveyancing a leasehold property is usually more expensive compared to the legal costs of buying a freehold property. It’s because leasehold conveyancing requires more work from your solicitor. They have to complete extra work on checking the lease, and they go full-time in coordinating with the freeholder or the landlord.
The prices of leasehold conveyancing differ depending on the requirements. You can check for conveyancing costs at the Conveyancing Store to get an instant quote.
How Long Does It Take For Leasehold Conveyancing To Finish?
Since leasehold conveyancing requires more work, it takes longer to finish compared to conveyancing a freehold property. It can take 8-10 weeks, but it may take longer than that, especially if the landlord does not actively respond to enquiries.
You may find leasehold conveyancing overwhelming because it has so many processes and coordination involved. That’s why you should look for the best solicitor or conveyancer to work with so that the process will be more manageable. Just make sure to work with a solicitor or conveyancer that is reliable and trustworthy who can provide you with all the information you need regarding leasehold conveyancing.
If you want to know how much you need to spend to have the best conveyancer, Conveyancing Store can provide you with conveyancers quotes! We can make your moving, buying, selling and remortgaging easy by giving you a conveyance quote comparison in under 30 seconds. Get an instant quote from us today!