Monday, 24 January 2011

Property Conveyancing – Leasehold Properties

With cheap conveyancing quotes, there are many factors which require consideration, such as purchase price, location and conveyancing solicitors fees.

Whilst a freehold property (i.e. a house) may be straight forward buyers do not envisage all of the hidden and future fees associated with a leasehold property (i.e. A flat or apartment.)

With a leasehold property there will often be additional fees that would not be attached to a freehold transaction and you have no control over these,

Firstly, with cheap conveyancing quotes, most conveyancing solicitors will charge an additional fee for dealing with leasehold properties. There will also be additional disbursements charged by the landlord and management agent for registration. These differ between landlords and the solicitor will be unable to confirm such fees without sight of the lease and landlord’s replies to enquiries.

Even after completion of your conveyancing quotes once you are the legal owner of the leasehold, you will continue to pay ground rent for the property and maintenance and service charges.

Whilst ground rent is apparent and often immovable because it is written into the terms of the lease, the service charges are not a constant.

Service charges refer to the maintenance of the block, contributions to insurance policies as well as future works and often contributions to the estate. The service charges are usually payable annually and there is often no cap or indication as to what these will rise to.

Another factor to bear in mind with your property conveyancing is that if the landlord wishes to renovate or redecorate the block you will usually have no say over this and will have to contribute to the works in the next service charge payment.

Many people are often unaware when they purchase a leasehold property of the monetary responsibilities attached and so when choosing your home, think carefully when considering a leasehold property.

if you need further information you should speak to your conveyancing solicitor prior to exchange of contracts and before you are legally bound to buy the property.