Buying a leasehold home

Enables’ IFA's inn Bishop's Stortford are always ready to discuss mortgage options for those wanting to buy their home. One factor that is coming back into play are leasehold properties and leasehold extensions. One conveyancing firm claims there has been a 140 per cent increase in the number of properties requiring leasehold extensions in just the past four years.



 A lease is a contract between the leaseholder and the landlord, and defines the responsibilities and obligations of both sides and states what you can expect from the landlord in terms of services. No two leases are the same. With a leasehold property, it's important to understand what you do and 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. You own the internal space, fittings, floor and walls.

In the height of the 1970s and 80s development boom a relatively high number of leases were created and are now getting ‘older’ while demand for leasehold properties is increasing as more first time buyers join the property ladder. “Buying a leasehold property, such as a flat, is often the only affordable option for a first time buyer. However, these transactions can often come with hidden surprises in the guise of short leases, ground rent arrears and sinking funds, making them more complicated and expensive than buyers realise” claims Doug Crawford, My Home Move chief executive.

“We estimate that thousands of properties will enter the market over the coming months with short leases, costing sellers tens of thousands of pounds to extend, resulting in additional delays to home movers and, in particular, first time buyers as they work to secure a mortgage. This added pressure, on an already over-extended housing market, could cause some real problems” he claims.

If you need any help checking out your leasehold contract why not get in touch with our team at Enable.

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  


Source: Estate Agent Today