We take a look at the legal complexities of leasehold conveyancing
While in practice there is little difference between leasehold and freehold property, leasehold conveyancing is generally more complicated than freehold conveyancing. This is because the content of a lease varies enormously from property to property and will contain conditions that are not generally included in a freehold title.
In simple terms a lease is a long tenancy of a property. Leasehold properties are often flats and apartments, but houses can also be leasehold. The party granting the lease is known as the landlord and the party acquiring the lease is the tenant. The length of a lease, at the date of creation, is usually between 99 and 999 years.
When buying a leasehold property, it is crucial for the purchaser’s solicitors to establish how long is left on the lease. The solicitor also needs to carefully consider the conditions contained within the lease to make sure they are acceptable to the purchaser.
Leases usually include obligations on the tenant to keep the property in a state of good repair, and to obtain the landlord’s consent to any alterations. The tenant may be restricted on letting the property and it is common for there to be a requirement to pay a service charge, along with ground rent.
The leasehold conveyancing process, which involves the lease being transferred from the seller to the buyer, starts off with the seller’s solicitor providing basic information about the lease. The purchaser’s solicitor is responsible for checking the lease, raising enquiries with the seller, and carrying out searches.
Once the parties have completed all the preliminary work and they are both happy to proceed, then contracts are exchanged. At exchange, a completion date is agreed, which is the day upon which the formal legal transfer takes place.
Following completion, the only legal step that then needs to be carried out is for the new owner’s details to be registered with the Land Registry.
If you are looking for an experienced solicitor to deal with your leasehold conveyancing then contact us by phone or email today for your free conveyancing quote.
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