We were recently contacted by an individual who was in the process of purchasing a flat. Although this wasn’t their first property purchase, they hadn’t purchased a leasehold before and asked our advice regarding any discrepancies they should be aware of. Here is what our conveyancing team advised:
Q. I am buying a leasehold flat. My solicitor has sent me a copy of the lease and told me to read it and let him know if I have any queries. I thought that my solicitor would check the lease for me. Can you give me any tips as to what I should be looking for, or be concerned by?
A. We would always recommend considering the lease and plans attached to it, including whether the floor plan matches the layout of the flat. This will reveal if alterations have been carried out, for which the landlord’s consent is generally needed.
Also check the length of the lease as less than 80 years can be problematic. Extending a lease can be expensive and mortgage lenders are not keen to lend on short leases, which can affect marketability of the flat.
Ensure the ground rent payable does not escalate unreasonably, some annual ground rents can double every 20 years. Read the restrictive covenants and obligations – the repairing obligations – building insurance requirements, and the sections dealing with service charges to make sure you understand the provisions and are happy with them.
Your solicitor should receive from the seller’s solicitor a management pack and repairs to leasehold property enquiries containing detailed information about the management of the building and service charge payable. Check the current service charge payable, whether there are service charge arrears, and if any major works are planned for the building.
These are only a few initial pointers. Prior to exchange of contracts, once satisfied with the search results and enquiries, your solicitor should provide you with a lease report explaining the terms of the lease and any issues.
Want More Info About Buying Leasehold Property?
If you are faced with a similar situation and require specific advice relating to a leasehold property, please get in touch with our professional, friendly team of conveyancing solicitors who will be happy to help.
