If you are just starting off in the world of trying to buy a home, Enable’s experienced IFAs of Bishop’s Stortford know getting to grips with all the terms can be a bit overwhelming. In England and Wales the vast majority of flats are owned through a leasehold, this includes everything from new-build properties, converted houses from 1960’s, tower blocks, to Victorian conversions.
When you buy a leasehold property, what you are actually buying is a legal right (a lease) which gives you effective ownership of the property for a given period of time usually the time is days on the lease. The lease on your property may have been granted (to the original owner of the flat) for a period of 99 or 125 years. But the key question for any new leaseholder is, how much remains on the lease, as of right now? No two leases are the same, so it’s essential that you, or a solicitor on your behalf, read and understand the contents of your particular lease.
With a leasehold property, it’s important to understand what you do & don’t own; you don’t own the plot of land the flat sits on, you don’t own the ‘fabric’ of the building, e.g. roof, external walls etc. What you do own however is the internal space, fittings, floor and walls. The Landlord or Freeholder owns and maintains the outer building & grounds on your behalf – a service you will almost certainly pay for via a service charge. If you are considering purchasing a leasehold Enable’s IFAs in Bishop’s Stortford can help you think it through.
Source: Property Today
Issued by: Enable Independent Financial Life Planners • 25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 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
