Selling a leasehold property is very similar to selling a freehold hold property however it can typically take longer to complete due to the additional work required to ensure the terms of the lease are passed correctly to the new owner.
What happens when selling a Leasehold Property?
A seller will be passing the right to live on the freehold land to the buyer and therefore the freeholder and any management company or agent they instruct will need to be involved.
The additional parties also add to the length of time it may take to complete as several matters need to be finalised. It may sound complicated, but it is really simple when you realise that the majority of matters are dealt with by way of a ‘leasehold management pack’ provided by the management company.
This pack forms part of the sellers’ pack and is reviewed by the buyers’ conveyancer who will raise the necessary enquiries on both.
The Lease attached to the leasehold property will be granted for a certain number of years. Knowing how long is left on the lease is important as it can affect the price of the property and the buyers’ ability to obtain a mortgage from a lender. If the term of the lease is short or close to the cut off period for a lender, then a simple lease extension can solve any issues.
This extension may also be carried out by a conveyancer and is likely to come with additional costs, but it is worth it as it will be more attractive to a potential buyer.
Best advice when selling a Leasehold Property
Details such as services charges, ground rent and any future major works play a crucial part in the transaction, so the best advice is to pay for and obtain the management pack as soon as you have found a buyer. The information will be included in the pack and having it at the start of the process will save valuable time.
Why Should You Hire A Conveyancing Solicitor?
A conveyancing solicitor is a fully qualified practising solicitor who can undertake the conveyancing process on your behalf. They’ll generally have wider training in other areas of the law.
Reputed conveyancers like AVRillo can do the job for you. They are licensed conveyancing solicitors in Southampton.
Your conveyancing solicitor will carry out different tasks depending on whether you’re buying, selling or both.
Their main role of a conveyancing solicitor is to ensure that the transaction goes through legally, and to deal with all the small details.
Things like working out what is included in buying the property, carrying out local searches and conferring with the seller/buyer’s solicitors to choose a completion date are just the start. They keep the process going, update you on next steps and are there to answer your questions and concerns.
It makes sense to use the same conveyancing solicitor for both buying and selling, so they can help coordinate the timeline of your move.
The client will also need to provide their conveyancing solicitor with various documentation such as ID, source of funds and further information on the property they will be buying or selling.
The role of a conveyancing solicitor
The role of a conveyancing solicitor is quite a demanding one. They are in constant contact with many other parties, which includes other conveyancing solicitors, agents, clients and third parties alike.
Once a conveyancing solicitor has progressed a file to exchange and completion. The conveyancing solicitor then continues to register the property with the land registry as per the post completion requirements.
In essence, conveyancing solicitors are crucial to the conveyancing process and ensure any legal enquiries are satisfied on behalf of the clients before they proceed ensuring no issues arise in the near future.
A conveyancing solicitor always has the clients best interests at heart and whilst it may seem that the conveyancing process at such times can be long winded, this not down to the conveyancing solicitor but down to the process in itself which involves many other third parties.