If you are considering selling your leasehold property, we understand that this is a significant decision. While the process of selling your leasehold property will be similar to a freehold sale, there are additional requirements along the way which you should be aware of and be prepared for.
We explain here more about what is involved in selling your leasehold property; if you have any further questions relating to the sale of your home, please do contact your local Residential Property team.
Owning a leasehold property means that while you own the property for a certain period of time, the land on which it stands is owned by the freeholder. As you know from purchasing the property, there are certain restrictions and responsibilities that come from owning a leasehold property and while you do not need permission from the freeholder when you have made the decision to sell, you are required to inform them, and provide them with certain details about the sale and the future buyer as and when the sale is agreed. Upon completion of the sale, the buyers will need to provide the freeholder with a Notice of Transfer, which informs them of the change in ownership.
You will need to provide your buyer with a Management pack which is supplied by the freeholder or Management Company. This pack will contain information including, but not limited to:
You should be prepared to pay a fee for this management pack, which is typically a few hundred pounds but can vary depending on the landlord.
In addition to the management pack, you will be required to provide the buyer with a copy of the lease agreement.
In addition to the management pack as explained above, there will be a variety of other fees, including estate agent fees, legal fees and any administration fees associated with a sale of a leasehold property, including:
Your lease will have the full details of the additional fees applicable, which we can review with you during the Conveyancing process.
When you purchased your leasehold property, you will have been aware of the length of the lease outstanding, and so will understand that the length of the lease will be an important factor for your potential buyers.
If you do have a particularly short lease, for example under 80 years remaining, you may need to consider extending the lease before selling as potential buyers could be discouraged if they are at risk. We can discuss the different options with you, including the costs and process involved in extending your lease to help you determine the right path.
In this situation, it is likely that you will collectively own a share of the freehold with the other residents in the building through a particular company. The buyer of your property will essentially become a member of this company upon the completion of the sale to them.
When selling your leasehold property, it is important that you use a legal team who have experience of such matters and know the terms to look out for in the lease, with experience of any necessary negotiations. Our Residential Property team are on hand to assist with your sale, answering any additional questions you may have. You can call us today at your local office, use the Contact Form or email moc.n1702095288ellub1702095288rekra1702095288p@ofn1702095288i1702095288.