If you are buying or selling a leasehold property, we are able to advise you on a whole range of issues including your obligations under the Lease, Lease extensions, mortgages, Restrictive Covenants, Ground Rent and Service charges.
Leases are normally granted for a number of years and the seller of a leasehold property is only able to sell the number of years left to run on the Lease, referred to as the remaining term. At the end of the remaining term, ownership passes back to the freeholder.
The owners of leasehold property will often have to pay ground rent, insurance rent and if the property comprises a leasehold flat, service charges for the maintenance of the building.
A minimum remaining term of 70 years is required by the majority of mortgage lenders and in some circumstances considerably less. Before you put your property on the market, or commit yourself to a purchase, the residential property team at Baches Solicitors LLP are able to examine the terms of the Lease and advise you of the implications before you incur the cost of a survey or pay a mortgage application fee.
Subject to satisfying certain qualifying criteria, owners of leasehold properties who have owned their property for a period of 2 years are entitled to a Lease extension of 90 years plus the unexpired term of the existing Lease. There is legislation in place which outlines the process. A premium will be payable for the new Lease and this premium is usually calculated by a qualified Surveyor.
Our experienced property lawyers can help you purchase the freehold to your property or extend the lease.