What is Leasehold Property?
What is a Leasehold Property?
Leasehold Property arises when a Lease is created from
a Freehold Title. A Lease is a long tenancy, typically between 99 and 999 years for an extremely low rent. The
Lease will contain conditions of use and ownership which need to be looked at carefully. This
is the contract between the Landlord and the purchaser of the Lease (Leaseholder). It is difficult to change the conditions
of the Lease once it has been bought so it is important that the conditions are acceptable and can be complied with.
What is a Lease?
What types of properties are Leasehold?
although in some areas (such as Sheffield) houses can be Leasehold.
What types of responsibilities do tenants usually have under a Lease?
Usually a tenant would be required
to keep the flat in a state of good repair, pay the Ground Rent on time, pay Service Charges (if required) and to seek
the Landlord's consent before making alterations to the property. Sometimes there may be restrictions on letting.
What do we do when buying your Lease?
As solicitors, if you are purchasing property under a Lease we check that
the Lease complies with standard Legal Requirements and advise you of the implications of signing the Lease and what conditions
you will be bound to. We also carry out the general conveyancing work such as applying for searches and raising
enquiries that arise from the documentation that is sent. For more information see Step by Step Guide to the Conveyancing Process.
Types of Landlord
There are usually 2 types of
the Landlords are Tenants. How this normally works is that each tenant owns a share in a company which owns the Freehold.
The Tenants therefore have control of the building.
is a separate Landlord who owns the building and manages (although they will often use Managing Agents). Sometimes a
Landlord will actually own and live in the building.