When buying a leasehold property, you are only securing the leasehold interest and the right to live in that property for a set number of years, you will not own the property outright. By purchasing a leasehold you are agreeing to the terms of the lease granted by the person or company who owns the building or land the property sits on, usually known as the freeholder, landlord or the lessor.
At Fosters we have a dedicated team of professional and approachable property specialists who offer friendly and expert advice. We have extensive experience in helping our clients purchase leasehold properties and navigate the specific, and sometimes complex issues surrounding these type of purchases.
How we can help
We help clients understand the terms and length of the relevant lease and importantly any additional cost considerations which are commonly associated with these types of property, such as service charges and ground rent payable to the freehold owner.
It is important to be fully aware of the lease length before purchasing – as this can have implications for a mortgage being issued and for the future value of the property. Most lenders now insist that the term left on the lease must be a minimum period of 30 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 55 years. Each mortgage lender’s requirements are different and should be considered when the term of the lease is known.
Whatever your situation we can help you understand your lease terms and help you consider your options with your landlord and lender. This might include negotiating terms, extending your lease, or looking to purchase the freehold at a future time.
Nearly all leaseholds are sold under long leases. however, there are examples of freehold flats or apartments, which can have more complex legal issues associated with them. Our property experts can provide advice in these circumstances too.
A leasehold property is a diminishing asset with additional liabilities and considerations for anyone looking to buy a leasehold interest in land.
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We offer a free no obligation quote, which you can receive direct to your inbox by completing our online form, or please contact us on 01603 620508.
Law Society accredited
The Law Society awards accreditations to legal practices and solicitors who meet the highest standards of technical expertise and client service in specific areas of law. We are members of their Conveyancing Quality Scheme (CQS), which is the recognised quality mark for legal experts in buying or selling property, and is trusted by some of the UK’s biggest lenders.