Purchasing a Leasehold Property

Whilst buying a home may be the biggest investment most people make in their lives it's also surprising that many do not make any necessary checks before signing on the dotted line.

This is extremely important when purchasing a leasehold property....

A Leasehold property is normally a flat, part of a larger property or set of properties. Some older houses are also leasehold so it's always safe to check what you're purchasing, not only for solicitors fees, but to make you aware of any restrictions in the future.

When you purchase a leasehold property you are purchasing the "right of occupation" and not necessarily the full structure of the building.

Ask the seller or a solicitor to check how long is left on the lease as anything under 80 years may cause problems when applying for a mortgage. A lease extension may be required which is time consuming and costly.

If you decide to purchase a leasehold you must be aware of any ground rent that is payable each year. What most people don't realise is that an annual service charge may be payable to the freeholder. This normally applies to a block of flats to pay for maintenance of the building and grounds.

There are also restrictions and limits on how far you can alter a leasehold property. The lease and deeds will explain what these terms are and you may need to apply for approval from the freeholder.

It is recommended that you seek advice from a solicitor before agreeing to purchase a leasehold property. This will avoid you potentially breaching the terms in the lease. 

If you are interested in buying a leasehold property, or buying out the freehold, but need advice please feel free to contact our conveyancing team. We're happy to help !

Richardson Law

Wilmslow & Manchester Property Solicitors

Tel: 0161 266 1114