Is selling a leasehold property a good idea? What is a leasehold property? Should first time buyers buy a leasehold property? Can I extend my leasehold?
The move came in response to a growing number of leaseholders protesting against being “trapped in their homes” due to high ground rent and service charges making their properties difficult, if not impossible , to sell. Some of those polle in fact, said they are struggling to find a buyer because they own a leasehold home.
A lease is a legal contract between the leaseholder and the freeholder. Making sure you’re aware of the specific terms of your lease agreement and having key documents to hand is a great place start. Short leases or onerous lease terms can render your home harder or almost impossible to sell. As the Home Owners Alliance rightly points out, “Most mortgage lenders won’t lend on properties with a lease under years.
There’s a little more paperwork to hand over, but your solicitor or conveyancer will know how to deal with it. Things only change if your lease is short, in which case it might be hard to find a buyer. Understand this reality and plan accordingly.
Financing for leasehold properties is difficult to get, and often unavailable for units with a short time left on the lease. (more…)