A landlord recently got in touch with our conveyancing team to ask why the conveyancing fees when purchasing a leasehold property were more expensive than on a freehold, and why it takes longer. We thought you might be interested in reading our reply:
Q: ‘I have started to build a portfolio of buy-to-let properties. So far, I have bought all freehold houses but now, for the first time, I'm trying to buy a leasehold flat. It seems to be taking ages, appears more complicated and my solicitors are charging me more. Why is that?’
A: Buying a leasehold property is generally more complex than buying a freehold property, though freehold titles can be complex, too.
Your solicitors will consider carefully the terms of the lease of the flat to see if there are any restrictive covenants that may limit the way you can use the place, and/or limit your enjoyment of it. They will also check the freehold title and any intermediate leasehold title.
When buying a flat, it is very important to be aware of how the building is managed. In addition to the usual property information form and the fittings and contents form, the seller's solicitors will provide replies to leasehold property enquiries which will include the provision of a management/sales pack that they will obtain from their client's landlord or managing agents.
The pack should be comprehensive and include such documents as accounts, fire and asbestos assessments, service charge budgets and insurance documentation.
You are being charged more because reading through a management pack, and leasehold and freehold title documents, plus raising enquiries and reporting to you can be very time consuming. Be aware that you may also be charged fees by the landlord/managing agents when your solicitors serve notice of transfer on your behalf.
Let Howells Do the Hard Work for You
At Howells, we have years of experience dealing with a wide range of conveyancing, including freehold purchases. If you have questions about buying or selling a property, please get in touch with our trained conveyancing solicitors in Cardiff to find out more about how we can help.
