Leasehold Sale and Purchases
When purchasing a leasehold property, you will only be purchasing the leasehold interest and will not, in theory, own the property outright and therefore you will not be able to alter the property without the Landlord's consent. The person, or company, who owns the building of which the flat forms part, is frequently referred to as the Freeholder, the Landlord or the Lessor.
On a Sale
If you are selling a leasehold property it will be necessary for us to ascertain details of any outstanding financial liabilities so that these can be settled on or before completion of your sale. This information will be obtained from you, the Landlord or its managing agents, who will make a charge for information/copy documents and accounts provided. However, we shall ask you to provide as much information as possible. It is, therefore, important that you send us copies of accounts and receipts in respect of the leasehold liabilities, together with any notices, and other communications which you may have received from the landlord or its managing agent.
On a Purchase
Nearly all leaseholds are sold under long leases. If, however, you have any reason to believe you are purchasing a freehold flat or apartment, it is important that you let us know as there are some complex legal issues associated with this type of property. Also, you (or someone buying from you in the future) may find it difficult to get a mortgage as many lenders are reluctant to lend on freehold apartments. If it is freehold you should let your lender or financial adviser know the situation at the outset when you apply for a mortgage.
With regard to leasehold properties, most lenders now insist that the term left on the lease must be a minimum period of thirty years over and above the term of the mortgage. Therefore, if, for example, you are having a 25 year mortgage, the lender would require the remaining term of the lease to be at least fifty-five years.
The Residential Property team at Fosters Solicitors have a wealth of experience and knowledge to assist you in relation to any legal property query or matter you may have. Call us on 01603 620508 or complete our online enquiry form and a member of the department will be in touch very soon.
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