Conveyancing Solicitors Newcastle and Sunderland

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The Problem with Leasehold Property

The Problem with Leasehold Property - Conveyancing Solicitors, Newcastle and Sunderland

Conveyancing Solicitors, Newcastle and Sunderland.

Many buyers are wary when buying Leasehold Property for several reasons;

  • Often with older properties the Leases are quite long (900+ years) and the rent is at the “old market rate” of a few pounds. So how does the freeholder make a financial return?

  • Most Leases will contain an obligation that on purchase the new tenant must provide “notice” of their contact details and their mortgage details. The Lease will often state that the landlord can charge a “reasonable fee” for receipting that notice

The Government has been reluctant to regulate this given it falls squarely in the public sector. As such, many leasehold companies will generally charge whatever sum they can get away with. Indeed, one such local landlord is charging £420 for the pleasure of simply updating two lines in their database.

No tenant wishes to run the risk of breaching their lease by not providing notice but neither do they want to be put to the cost of challenging the definition of 'reasonable' by taking the landlord to court.

Selling a Leasehold Property?

Even as seller you are not entirely without cost. Any buyer purchasing a Leasehold Property will want to know that the rent is paid to date to ensure you are not in breach of your Lease obligations. Despite the rent being less than a few pounds on some of these properties, if you can’t produce a receipt for payment, the landlord will charge you for a copy of your rent account. One such recent fee was over £100 despite the rent being £2.50!

Indeed, in one extreme case, the landlord and their managing agent charged in excess of £1,000 to the buyer and seller; more than either solicitor will have made on the transaction and again, for a mediocre amount of work.

The moral is, if you are buying or selling Leasehold property, budget accordingly. It would certainly be prudent as a buyer to ask the agent to make some relevant enquiries before making your offer. You should also instruct and Expert Conveyancing Solicitor as there are many other problems that can occur with Leasehold property including; missing head landlords, missing leases, or leases being badly prepared at the time of drafting.

If you have any queries relating to the purchase or sale of a Leashold Property then our Expert Conveyancing Solicitors will be only too pleased to help you.

If you would like any further information about our Conveyancing Services or you would like a FREE Fixed Fee Conveyancing Quote, then please do not hesitate to contact us on:

Expert Conveyancing Solicitors- Newcastle:   0191 284 6989

Expert Conveyancing Solicitors - Sunderland: 0191 567 6667

or email us:
or complete our online enquiry form and select Conveyancing

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Our Gosforth office is located at 137A Back High Street NE3 4ET - call in and see us at any time. We have wheelchair access, you can be dropped off at our front door, and there is free parking on the adjoining streets.

You can also park opposite our Sunderland Office on John Street.

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