Flats and apartments are typically leasehold, and in recent years we are seeing a growing number of new build houses being sold as leasehold properties.
These are some of the common issues relevant to any leasehold property:
1. Description of the property: The exact extent of the property will be set out in the lease, and there is usually a floor plan. The lease will also say if you are entitled to use other facilities, such as a communal garden.
2. Ground Rent: Leaseholders may have to pay their freeholder a ‘ground’ rent for their property. Sometimes this is a nominal amount, or a so-called ‘peppercorn rent’. However some residential leases contain provisions for the rent to be increased at specified intervals.
3. Building maintenance and service charges: With leasehold properties you usually do not own any part of the building except possibly the internal walls, plasterwork and decorative finishes. The main structure of the building is owned by the freeholder, who should be responsible for repair and maintenance. The lease will specify who has to meet the costs of any repair work.
4. The range of services which the freeholder should provide is specified in the lease, and you should ask your Conveyancing Solicitor to provide a copy of this and explain any details to you.
5. Freeholders often appoint managing agents to look after their properties, and collect the rents, but the leaseholders have to pay the charges of these agents in addition to the other service charges.
6. Other covenants: Leases may contain other covenants which the owner has to comply with. For example, these may require the interior to be decorated at regular intervals.
We have considerable experience in dealing with buying and selling leasehold properties, and a large number of properties are leasehold. The key is to understanding the implications of this before moving in, and then the vast majority of people live quite happily with their leasehold interest.
If you would like to contact us to arrange a free 30 minute consultation you can do so here or call 0116 2665394
Rebecca Gunn specialises in Employment law, Commercial Property & Residential Property and is a solicitor in our Leicester office.
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The information provided in all of our blogs reflects only a narrative of some elements to consider on the topic. The blogs do not contain considered legal advice and should not be relied upon as advice. Please see our website terms and conditions for full details of our disclaimer. If you are interested in obtaining advice, please contact one of our lawyers who will be happy and able to advise you on your own particular circumstances.