The difference between freehold and leasehold property
Leasehold Conveyancing Solicitors
When you instruct our experienced team for your leasehold property conveyancing, in addition to the usual checks, you can ensure they will help to clarify:
Understanding Lease Lengths
The longer the lease, the better, in most cases. Bear in mind that although you will own the property, you will remain a ‘tenant’ of the land on which it is built. As such, you may have to seek permission from the freeholder to make any changes to the property or extensions onto the surrounding land within the plot.
It is generally advised that properties with a remaining lease of 80 years or less, the lease will need to be extended. If not, contributing factors would make mortgage rates increase and you may struggle to re-mortgage or even sell in the future.
Such terms can often be breezed over in the initial stages of the purchase but it is crucial to find out this information to know where you stand. Future saleability of the house may be affected if the lease is not extended. You could, in some circumstances, purchase the freehold, but you would need specialist advice on this specific to the property you own.
On the plus side, reform to leaseholds is due, although there is no exact date of when this will take place. Consequently, a decision on freehold purchase or lease extension may be better waited on for a while, if possible, until new changes become law.