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Many buyers are wary when buying Leasehold Property for several reasons;
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.
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
You can also park opposite our Sunderland Office on John Street.