Getting your house in order
As many of us are on furlough or have more time at home than we would normally have during these unprecedented times, it maybe a perfect time for you to consider putting your house in order.
Sheffield has a high concentration of leasehold properties and although there is nothing wrong with this on the face of it, we find that some clients encounter problems when selling property as their leases have a minimal term remaining which can cause issues for those of us requiring a mortgage.
The majority of mortgage lenders will require a term of at least 80 years remaining on a lease in order for them to proceed with the agreed mortgage offered to buyers. If the lease has less than 80 years remaining, then this can delay the conveyancing process and lead to additional costs for sellers in either having to extend their lease or purchase the freehold if they are selling a house.
Best Solicitors are suggesting to their clients that they consider reviewing their leasehold properties to consider if now is the time to extend their lease or purchase their freehold. The law in England and Wales states that where you have owned a property for two or more years, you are entitled to purchase the freehold (if a house) or extend your lease (if a flat). This is subject to paying the land owner the required consideration and following the required statutory notice procedures. In some circumstances the process can be simpler as a land owner may agree to the extension or sell the freehold without the need for the statutory notices to be served.
Here at Best Solicitors our residential and commercial conveyancing team have a wealth of experience in advising our clients on leasehold properties. If you would like to discuss matters further, please contact one of the members of our team who will be happy to discuss your options.