Simple Guide to Buying Leasehold Property: Key Considerations
Buying a property where you own it for a certain number of years, known as a “leasehold”, is different than buying one where you own it forever, called a “freehold”.
If you’re thinking of buying a leasehold property, here’s what you need to think about:
- Length of the lease: The first and foremost thing to consider when buying a leasehold property is the length of the lease. The longer the lease, the better it is, as it provides security and value to the property. Typically, a leasehold property should have a minimum of 80 years left on the lease.
- Ground rent and service charges: You should also consider the ground rent and service charges associated with the property. These charges often increase over time, so it is important to have a clear understanding of how they will impact your finances in the long run.
- Maintenance of the property: It is essential to know who is responsible for the maintenance of the property, whether it is the landlord or the leaseholder. It is also important to know what is covered by the service charges and what is not.
- Restrictions: Leasehold properties often have restrictions on what you can do with the property, such as restrictions on subletting, alterations, and pet ownership. You should make sure that you are comfortable with these restrictions before buying the property.
- Enfranchisement rights: It is important to know your enfranchisement rights, which are the rights to buy the freehold or extend the lease of the property. You should also know the costs associated with exercising these rights.
- The reputation of the landlord: The reputation of the landlord is also an important factor to consider when buying a leasehold property. You should research the landlord’s track record and reputation to ensure they are reliable and easy to work with.
Overall, buying a leasehold property can be complex, so it is essential to consult with a legal professional who can guide you through the process and help you make an informed decision.
Whatever property you are buying, the property will be checked, and significant defects will be reported to you in a clear and concise manner. If you are concerned about any defects in your property, get a quote or call us on 02036910451.