What is a leasehold property
A leasehold property is different to a freehold property as rather than buying the actual property what you are buying is a lease to live in the property for a number of years.
The lease will details all the areas that you own but generally you will not own common areas such as stairs, common gardens etc as these will still be owned by the freeholder. The freeholder is the person who owns the title to the property and this will be your landlord.
The landlord will often employ a management company who will handle the day to say running of the common parts, such as maintenance of the communal gardens, the decoration of the common parts like the stairs.
On buying a leasehold property the buyer will enter into a lease of the property with the landlord and this will clearly detail what property you are going to be able to occupy and what rights you have over the common areas.
The purchase of a leasehold property is generally more complicated than a purchase of a freehold property as there are extra documents to consider including the lease.
Your solicitors will
– check the lease and ensure that the terms are correct for example they will check the mortgage term and see if the length of term is appropriate and if not advise you on whether the lease should be extended.
– check the terms the lease to ensure that none of the obligations are too onerous
– check that the rent is fixed and easy to establish
– ensure that there are appropriate provisions for insurance. As you will have the right to occupy the property it will be important that the insurance provisions for the whole building are appropriate
– check that there are appropriate rights granted for the enjoyment of the property such as rights of access, rights of support and protection
– check that there are no unreasonable restrictions in the lease
It is important that you seek specialist advice when buying a leasehold property and at Fidler and Pepper we have a specialist leasehold team. If you are thinking of buying a leasehold property then please click here to obtain an online quote and also feel free to call on 01623 451111 if you have a questions.