Selling a Leasehold Property
Understanding Leasehold Properties
We understand that selling a leasehold can be complex, and we are here to offer clear and straightforward advice and support to help you navigate each step with confidence. Our experienced team is committed to ensuring that your sale goes forward efficiently and smoothly.
Leasehold properties, mainly consisting of flats, have a distinct ownership structure. The government estimates that there are approximately 4.98 million leasehold homes in England, with 70% being flats and 30% houses. When you buy a leasehold property, you purchase the right to occupy it for a specified period as described in the lease. This means you do not own the land itself; instead, you have rights to use the property for the duration of the lease.
Leasehold vs Freehold: Key Differences
The main difference between leasehold and freehold property is in ownership and the associated costs.
When you buy a freehold home, you own both the property and the land it sits on indefinitely. In contrast, with a leasehold property, you only own the property for the duration of the lease, and you may incur additional ongoing charges.
Leasehold properties often require you to pay maintenance fees and an annual service charge to the freeholder, which are expenses not typically associated with freehold ownership. Additionally, the freeholder is responsible for maintaining the exterior of the building and the communal areas.
Misconceptions About Leasehold Properties
One common misconception is that leasehold ownership is inherently less desirable than freehold ownership.
While selling a leasehold property can be complex, especially if the lease is short, this does not necessarily mean the property is less valuable or more difficult to sell.
With the right guidance and preparation, you can make the process of selling your leasehold property straightforward. Additionally, it’s a misconception that leaseholders have no control over service charges; there are legal options available to challenge unreasonable costs and we can offer support with this.
Professional Conveyancing Fees
Professional Conveyancing Fees
| Cost of Property | Average Conveyancing Fee |
| Up to £300,000 | £1295 + VAT |
| £300,000 – £350,000 | £1295 + VAT |
| £350,000 – £400,000 | £1295 + VAT |
| £400,000 – £450,000 | £1295 + VAT |
| £450,000 – £500,000 | £1395 + VAT |
| £500,000 – £600,000 | £1495 + VAT |
| £600,000 – £800,000 | £1595 + VAT |
| £800,000 – £1,000,000 | £1895 + VAT |
| £1,000,000+ | £1895 + VAT |
Breakdown of costs not included in the above:
- ID Check £30.00 + VAT
- Obtaining Official Copy of Title Deed £30 + VAT
- Same-Day Bank Transfer Fee (CHAPS) £42.00 + VAT
Disbursements are costs related to your matter that are payable to third parties, such as Land Registry fees. We handle the payment of the disbursements on your behalf to ensure a smoother process.
If required, these costs are not included in our fees.
- Agent Commission (costs agreed by client directly)
- Mortgage Redemption (dependant on property)
- Management Packs (Freeholder or Managing Agent) £100 – 400 + VAT (prices may vary depending on location).
For example, if you are looking to sell a £600,000 property, the estimated total (including required disbursements/third party) would be around: £1590 – £1890 + VAT.
*There are a range of factors that could increase the cost of our service. For example:
- If legal title is defective, or part of the property is unregistered, or the lease needs extending or amending
- If we discover building regulations or planning permission has not been obtained
- If crucial documents we have requested from you or a third party have not been provided
- Management packs (may vary in price)
- Digital signing of documents £4.58 + VAT
- Referral fees
- If we need to obtain Indemnity Insurance Policy (if required) £30 + VAT (Policy premium paid by client and varies based on purchase price).
- In the event that we have to retain money for service charges or ground rend we will charge an average fee of £95 +VAT
To receive a fully personalised quote, please complete our How Can We Help form to the right of this page, call 01202 315005 or email [email protected]
Once you receive an offer, take the time to carefully consider the terms and conditions. Assess important factors such as the buyer’s financial position, any contingencies associated with the offer, and the proposed timeline for completion.
After accepting an offer, you will need to sign and exchange contracts with the buyer to finalise the sale. Our conveyancing lawyers are experts in assisting and ensuring that your interests are protected throughout the process.
Selling a leasehold property comes with unique challenges compared to selling a freehold property. One significant concern for a potential buyer could be the possibility of unfair service charges, ground rents, or other fees associated with your property. If the lease has less than 80 years remaining, extending it can be costly, and potential buyers may find it difficult to secure a mortgage.
Providing clear and transparent information about these factors can help reassure buyers and lead to a smoother transaction.
When selling your leasehold property, there are several pitfalls that can hinder a smooth sale. One significant issue is having a short lease, which can deter potential buyers.
Ensure that all paperwork is accurate and readily available, including the leasehold information pack (TA7) and any service charge accounts. Neglecting these details can result in delays and complications, which can impede the selling process.
Conveyancing Process for Leasehold Sales
Conveyancing is the legal process of transferring property ownership from one party to another. It encompasses all the necessary steps to ensure that the transaction is legally sound and that the buyer receives clear title to the property.
Initially, our qualified lawyers will take your instructions and provide initial advice. After these preliminary steps, the following specific actions are necessary:
- Proof of identity checks are conducted.
- The fittings and contents form, along with the property information forms, must be completed.
Given that this involves a leasehold property, you can expect requests for additional information, such as details about the lease terms, ground rent, service charges, and any existing notices affecting the property.
We will obtain the title deeds or official copies of the title register from the Land Registry, which include details of any outstanding mortgages. We will then prepare a draft contract for you.
The supporting contract documentation is sent to the buyer’s conveyancer, who will review the contract and raise any inquiries. The buyer’s conveyancer will undertake several confirmation steps:
- Confirm that acceptable search results have been obtained.
- Verify satisfaction with the pre-contract inquiries and confirm receipt of a mortgage offer, if applicable.
Once the seller and buyer agree on a completion date, contracts are formally exchanged, and the transfer deed is checked and sent to the seller for signature in preparation for completion.
The final stage is to complete the sale of the leasehold property. Please note that these steps may vary depending on the specific circumstances involved in selling a leasehold residential property.
How We Can Help You Sell Your Leasehold Property
Our experienced lawyers, who hold Law Society Accreditation under the Conveyancing Quality Scheme (CQS), have a proven track record in successfully managing leasehold transactions.
Our Residential Conveyancing team take pride in delivering exceptional client care and quality service, allowing you to fully enjoy the excitement of buying your new home. With over 250 years of combined experience, you can trust in their ability and dedication in providing an understanding and efficient service, even in the most complication circumstances.
If you are considering selling your leasehold property and would like expert advice, do not hesitate to contact us and we will be happy to provide you with a personalised quate, while answering any questions you may have about the conveyancing process.
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