Welcome

My name is Charlotte Gill and I’m one of the directors here at JP Harll.

Over the 9 years, we’ve been serving the people of Selby, we’ve helped hundreds of clients take their first steps onto the property ladder.

Our experience means we know just how exciting, terrifying, inspiring, and overwhelming the whole process can be.

Some people are excited about moving out of rented, shared accommodation, or parents’ homes.

Others are anxious about the amount of responsibility, paperwork, and money this move involves.

We are here to guide and support you throughout the ups and downs of your home buying journey.

We aim to ensure you have the right guidance and support to help you make the best decision for you and your future.

After reading this, you may find it beneficial to have a no-obligation, confidential chat with us about your situation.

Thank you for your time, and please get in touch with us if you have any questions whatsoever.

Charlotte Gill

Director
JP Harll

Everything you need to know about buying a leasehold home

What’s the difference between a leasehold and freehold property?

A general rule of thumb is most houses are freehold, and most flats are leasehold. Buying a freehold property means you own the building and the land it’s on. In layperson’s terms, you own it outright – forever. Buying a leasehold property means you own only the building (not the land it sits on) and only for a set period. Essentially, the land is being leased to you for a contractually agreed number of years. When the lease finishes, the property will belong to the landowner (the freeholder) unless you have extended the lease. But remember, you can nearly always extend leases on leasehold properties.

What questions should I ask the estate agent and/or my solicitor?

There are usually six main ones. They are below in order of popularity: What is the length of the lease? How much are the service charges? Am I expected to pay towards the building insurance? How much is the ground rent? At what intervals does the ground rent increase, and by how much? Have you been advised of any significant work planned on the building/development? We cover these in more detail on the following page.

Should I be concerned about buying a leasehold property?

Don’t be. Hundreds of thousands of people buy and sell leasehold homes every year. So, you have little to worry about with the proper professional guidance and expert advice.

There are often plenty more questions potential buyers of leasehold homes ask, so feel free to give us a call to find out more.

What is a lease?

A lease is a contract between a leaseholder and a landlord. The landlord (freehold owner) has specific responsibilities, as does the person who has bought the leasehold.

What is a typical lease length?

This varies from property to property. It often spans from 999 years on new-build homes but can be as low as 80 years and under. Be very wary of buying a property with less than 80 years remaining, as it can be expensive to extend, and most mortgage providers will not lend money to fund a purchase like this.

What are service charges?

A service charge is a fee the leaseholder pays to the landlord to cover their share of the cost of maintaining the leasehold property. This can include decorating communal areas, building insurance, cleaning windows, landscaping and maintaining or repairing things like lifts or roofs. It can be a monthly or annual cost. Be very clear about what service charges are on any property you are interested in. A good estate agent will be able to provide you with this information.

What is ground rent?

It is an annual fee charged on leasehold properties as a condition of the lease for the land the home is on. They are usually low, ranging from £50 – £300 a year

At what intervals does this increase, and by how much?

Again, this is an important question and one the estate agent or your solicitor can seek and provide the answer to.

What else should I ask?

Ask if any major work on the building/development is planned. If so, are leaseholders expected to pay towards it and what are the costs? You’ll need to factor this into your buying decision and budget.

Why is it important to choose the right solicitor to represent me when buying a leasehold property?

The purchasing contracts that accompany some leasehold properties can be complex. A good solicitor will protect your interests, ask the right questions, and identify potential issues.

TOP TIP!

Read the next page for advice on choosing a super solicitor rather than a lazy lawyer.

Seven things to be aware of when buying a leasehold home

1. Short leases:
   If a property has a lease with less than 80 years left, it could be a problem. Less than 70 years and that problem increases enormously.

2. Budget for everything:
   Consider service charges, ground rent, legal and professional fees, and how much a potential lease extension (if necessary) could be.

3. Cheap but not cheerful:
   If something seems too cheap, there is usually a reason behind it. Unfortunately, that reason is typically a looming lease extension.

4. Know your ground rent:
   Usually, annual ground rents are very low. Always get your solicitor to confirm what the ground rent is and if there are any planned increases.

5. Check the maintenance fees:
   Find out how much you will need to contribute to service charges per month/year and when any major repairs have been scheduled.

6. Do read the small print:
   Buying a leasehold property with your eyes wide open will mean you make the right decision. Ensure your solicitor has reviewed your lease.

7. Don’t be put off:
   Leasehold properties provide millions of people in the UK with great places to call home. If you do your research, set your budgets sensibly, and work with trusted property professionals, there’s nothing to fear and plenty to gain.

Selecting a Legal Eagle

A good property solicitor is vital when buying a home. But for a leasehold property, choosing the best solicitor increases in importance.

Six tips on choosing a solicitor:

1. Ask family and friends for recommendations, especially for leasehold property.

2. Estate agents can recommend solicitors but check if they are incentivized.

3. Request a fixed fee in writing that includes other costs such as legal searches.

4. Check the solicitor is a member of the Law Society of England and Wales.

5. Cheap is often not cheerful. Some online property law firms offer low fees but may leave clients frustrated.

6. Ask the solicitor: “How much experience do you have dealing with leasehold property sales?”

Additional Advice

• Contact at least three estate agents for valuations when selling.

• Don’t just choose the agent with the highest valuation or cheapest fee.

• Instruct a conveyancing solicitor immediately before going on the market.

• Start clearing furniture you don’t want. Charity shops, auctions, or home clearance companies can help.

• Begin packing items you don’t use much.

• Get quotes from three removal companies for the move.

• Create an essentials box for the day of the move with items you might need quickly.