Where did you hear about us?
The monthly magazine providing news analysis and professional research for the discerning private investor/landlord

Things to Consider When Purchasing a Leasehold Property

Perdip Kaur Bhachu, senior associate solicitor in the residential property team at Blacks Solicitors, comments

It’s currently estimated that in the UK, there are 4.86m leasehold properties, of which, 69% of these are flats and 31% houses.

As leasehold properties make up such a large proportion of the properties available in the UK, it’s vital that tenants understand the terms they are agreeing to and key considerations before purchasing a property.

What actually is a leasehold?
By definition, a leasehold property is the purchase of a Lease from the Landlord to have the right to use the flat, apartment or house for a set period of time. The Lease is the agreement between the Landlord and the Tenant, which contains all the Landlord’s and Tenant’s rights and obligations. When purchasing a leasehold property, whether it’s a flat, an apartment or a leasehold house, there are several key points in the Lease for tenants to understand and consider.

The demised premises
This is the extent of the property you are buying as detailed in the Lease and shown on the Lease plan. This typically includes the interior parts of the property such as surfaces, interior walls, interior parts and joints below. You should check that this accords with your understanding of what you are purchasing. If there are any discrepancies, they should be addressed during the purchase process.

Alterations to the property
Before agreeing to a leasehold, it’s best advised for tenants to familiarise themselves with any restrictions in the Lease, related to alterations or additions to the property. Tenants should also enquire as to whether the sellers have carried out any alterations themselves by reviewing the Lease plan and Law Society Protocol Forms at the outset. 

Want the full article?