Buying a Leasehold Property? Read On…
express-conveyancing

Buying a Leasehold Property? Read On…

Buying a Leasehold Property? Read On... Express Conveyancing

Leasehold Property

It is a really interesting to listen to the various justifications people make when it comes to buying a leasehold property. To break it down, it is quite important to understand the difference between a Freehold and Leasehold Property is.

Buying a Freehold property means that you own the property/any land etc. In essence the buildings and the land that the building has been built on. On the other hand, buying a leasehold property means that you only own the rights to the inside walls and anything in between of this walls. Furthermore, signing the contract means that you covenant yourself into adhering to any restrictions and conditions outlined on the lease. A good example of this is the prohibition of any tenants keeping any pets at the premises. These terms/covenants could be so important in some instances that there could be restriction on the property that you as the new buyer will not be able to register your interest on the property unless specific consent is obtained.

In todays market, the main issue seems to be the price. A majority of first time buyers cannot afford to but anything apart from a flat which inevitably comes with a Management Company whether you like it or not. What you need to keep in mind is that a management company does exactly what it says on the tin. They are the agents who manage the property on the freeholder’s behalf. So in addition to you paying the ground rent for the land to the freeholder, you will also be paying a service charge for the upkeep of the managing company. The issue is that even though the figures could look appealing when you purchase the property, the managing company reserve the right to review this fee. The rent review period could also be as frequent as every year!

From a buyers point of view, at the point of purchasing you will be liable to pay whats known as Notice Fees to the agents so that they may amend their records to your details as the new owners of the property. From my professional experience, I have seen these costs easily running into a good few hundred pounds plus VAT.That doesn’t  end there. When it comes to you selling the property, you as the seller is obliged to pay for a Management Company Pack which in essence show the financial information etc.

The purpose of this article is not to put anyone off purchasing a leasehold property but to rather make you aware that there are additional costs involved with buying a leasehold property.Its always to have a reserve of funds when it comes to buying a property as hidden costs like this always have a tendency to come any bit the inexperienced first time buyers on the back.

If you have any more questions, please contact the Express Conveyancing resident conveyancing guru!

What our clients say

Great value for money. Everything went smoothly and I was very pleased with the service provided
Rachel Whitfield
Rachel Whitfield
20:59 12 Oct 18
Excellent! Very responsive, and really helped to push the purchase. There were unexpected delays during the process, but Anthony really helped to reassure me that he was doing everything he could to progress the sale. Ultimately, it all worked out in the end, and I would highly recommend! I would also recommend for auction purposes.
Sean Stevens
Sean Stevens
09:14 21 May 18
Very happy customer. Understanding of our needs and recommended a really fantastic solicitor.
Jack Hearne
Jack Hearne
17:49 12 Oct 18
I have just completed the purchase of my flat with them. They were recommend by the estates agents Phillip Arnold and they were fantastic. My case was handled by Milena who was really helpful and always available on the phone. The online system is also really easy to use. If I buy or sell a property I will definitely be using them again.
Sharon Kelly
Sharon Kelly
18:27 20 Dec 17
I used this service following a recommendation. The online case tracker worked really well. I would recommend this service as it's vital in the coordination between Estate Agencies and between Solicitors. The service proved invaluable in helping progress the conveyancing work efficiently and effectively. Completed the transaction just before Christmas having instructed the Solicitors on the 4th.
Shelly Harrill
Shelly Harrill
16:30 19 Dec 17
Excellent Service. Final Price same as quoted.
A Google User
A Google User
14:26 19 Dec 18
Have used them twice. Both times completion happened in less than 4 weeks, even over Xmas! Totally amazing. They take the stress out of the whole process.
Daniel West
Daniel West
13:04 21 Dec 18
Excellent Service. Final Price same as quoted
Parsa Khamooshi
Parsa Khamooshi
15:54 21 Dec 18
Being a first time buyer they guided me smoothly through the whole process of moving into my first home. Very professional and economical.
Uday Seth
Uday Seth
12:31 24 Dec 18
Express Conveyancing have been excellent in the handling of my recent house sale and purchase. Would highly recommend
James Ellis
James Ellis
11:43 30 Apr 19
Express Conveyancing have been excellent in the handling of my recent house sale and purchase. Would highly recommend
Michelle Preston
Michelle Preston
12:20 30 Apr 19
ThanksThanks for handling my sale and purchase. No complaints from me. Rebecca was regularly on hand to help with my queries and deal with issues.
Claire Miles
Claire Miles
17:48 07 May 19
I bought my first home in South London with Express Conveyancing . Great professional service, I was regularly updated and looked after. Top marks, 100% recommendation from me!
Dale Griffiths
Dale Griffiths
15:58 02 May 19
Good service and happy with the conveyancer
Chris Jenkins
Chris Jenkins
22:01 17 May 19
Great service from start to finish. Was great being able to see progress online! Very quick and efficient! All staff were helpful. Highly recommend
Reece Moseley
Reece Moseley
06:20 30 May 19
I would highly recommend them. They deal with any queries promptly and efficiently. Would definitely use them again.
Sahar Dalini
Sahar Dalini
09:13 10 Jun 19
Fair prices good efficient service
Sue Batchelor
Sue Batchelor
18:46 01 Jun 19

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