If you are looking to buy property Enable’s IFA’s in Bishop’s Stortford can try and help you find the right financial solutions. Financial planning is one thing but there is always a lot to think about when buying any property. Things can be particularly complicated with leasehold tenure.
What is a leasehold?
With a leasehold purchase there are four additional factors that you need to consider carefully. Firstly the duration of the lease, secondly you need to look at the term of the lease and see if there any unacceptable clauses. You then need to consider the ground rent and be clear about any service charges.
With more and more properties becoming leaseholds, it’s important to understand that what you are buying is a lease not a freehold. That means that you only have the right to occupy the property for a specified length of time. You are not actually buying the property itself.
Leases will expire, so make sure you check the length of expiration
The one certain thing about a lease, is that it will expire, although they can always be extended. A lease is normally granted for a period 99 or 125 years, but that would have been to the original owner of the flat, perhaps more than 30 years ago. The crucial question for you is how much of the lease remains when you take ownership?
Make sure you see the lease before you buy
If you find a leasehold property that you’re interested the first thing to do is get a copy of the lease. The lease itself is usually a 5 pages or so long document, which includes various sections; a large scale map of the property, parking space, start date and duration/term of the lease, the name of the landlord, details of the ground rent payable and service charges payable.
But there are also likely to be various clauses usually written in unintelligible legal-speak, that it is worth getting a solicitor to look at before Enable will help you make any firm offers and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us.
755950 – Fax: 01279 657339 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE