Conveyancing is a bit more difficult for leasehold properties. There’s more work to do for the conveyancer/solicitor, this makes it more expensive than freehold conveyancing.
If you’re selling a leasehold property, there will be an extra form to fill out, the TA7 form.
Other extra work needed with a leasehold:
Review The Lease
The lease is a complex document, there is a lot of important information in the lease. It needs to be checked by the buyer and the buyers conveyancer. If the buyer has a mortgage, you’ll have to make sure the lease meets with the lender’s requirements.
With a mortgage, you’ll need to know how long you have left on the lease. Most mortgage lenders will not lend for short leases. If the unexpired term of the lease is less than 80 years, you’ll need to notify the lender and make sure they’re still happy to lend the money.
You can extend the lease, but there will be extra legal fees.
Contact the Freehold
The freeholder could be an individual or a company. Your conveyancer will need to request information from them as they might have a few responsibilities to take care of. Normally they’ll have to keep the property in good repair, for example: if the lease is a flat, the lift might break and need repair.
There might be a service charge included in the leasehold. You’ll have to check this and make sure you’re happy with the costs.
The conveyancer/solicitor will check that there’s buildings insurance on the property. The lender will need buildings insurance to protect their mortgage.
Consent from the Freeholder
Sometimes the lease contract will need the freeholder to give consent to this Leasehold sale.
Do I have to pay Stamp duty on Leasehold properties?
Yes, Stamp duty applies to both freehold and leasehold purchases over £125,000.