Sale of a Leasehold Property
Selling a leasehold property is not quite straightforward and requires a little more planning and some extra documents. Owning a leasehold property means that you own the property but not the land it sits on. Flats, houses, and new builds are mostly leaseholds in the UK.
Selling a leasehold property means transferring the lease to a new leaseholder. The new leaseholder must comply with the terms of the agreement and pay ground rent, repairs, and service charges.
A leasehold sale is not as straightforward as selling a freehold property and it requires filling in extra few forms. The process of selling a leasehold can be facilitated with the assistance of an experienced solicitor and estate agent.
The Process For Selling a Leasehold Property
Property Valuation
First and foremost, determine the amount that your property can fetch. There are plenty of services that help you give an estimate of what your property is worth. Besides, the seller can ask the estate agent to come and value the property. The real estate agent will provide an estimate after considering general conditions, amenities, and home renovations.
Check the Lease Term
The length of the lease has a significant impact on the property’s value and saleability. Ideally, the lease should be extended when the lease length is around or less than 80 years. Check paperwork to gather information about the lease term. Generally, the longer the lease, the easier it is to sell the place.
Documentation Required
Essentially, a copy of the lease contract between the leaseholder and the freeholder is required when selling a leasehold property. In addition, complete the Leasehold Information Pack, otherwise known as the TA7 form.
This Leasehold Management Pack will include all the relevant details about the lease. It outlines rent, service charges, maintenance fees, major repairs, etc.
Hire an Experienced Solicitor and Estate Agent
A seller can streamline the process of selling a leasehold property with the right crew onboard. Hire a conveyancer/solicitor and real estate agent that specializes in dealing with leasehold sales to resolve any issue that might come up with the lease.
Get Your Property Ready For Viewings
Buyers will only be interested in buying the place if it is in good condition. Therefore, spruce up the place for sale to maximize the appeal. Clean the place thoroughly as well as fix any minor issues.
Market Your Property
Here, the real estate agent has to show his skills. They will not only market the house but arrange viewings and negotiate with potential buyers as well to close a deal.
Accept an Offer
Once the seller has accepted a suitable offer, the solicitor will draft a contract and deal with other legal aspects of the transaction. Typically, there is more paperwork involved with the sale of leasehold property.
Complete the Sale
Lastly, exchange the contract to make the deal legally enforceable. At this stage, if the buyer decides to pull out of the deal, it would not be without consequences. The sale will be completed two-to-three weeks later and, finally, the lease officially changes hands.
Disclaimer:
The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Connaught Law and authors accept no responsibility for loss that may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please don’t hesitate to contact Connaught Law. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Connaught Law.
About the Author
