Three Reasons Why Leasehold Transactions Take Longer Than Freehold Transactions

Are you looking to buy a leasehold property as your next home? It’s important to note that leasehold property transactions will take longer than freehold property transactions. This is because more legal checks are required on a freehold property. When you purchase a freehold property, you are purchasing the right to occupy the property for a set number of years. You don’t own the land outright. Therefore, additional checks are needed, and these additional checks take time.

However, if you are aware of this in advance, at least you know what to expect. Below we have listed some of the areas where delays will often arise and why leasehold transactions will take longer than freehold property transactions.

1. Lease Reviews

A conveyancing solicitor must thorough examine the lease and asses the terms included within it. This includes the remaining lease, which may need extending if it is a short lease. The ground rent and services charges will need to be reviewed too. The conveyancer will also check for any restrictions that could affect the sale of the property in the future.

Our team of conveyancers in Peterborough will carry out a proactive lease review at the start of the transaction. This enables us to highlight any potential issues early on, so they can be resolved with minimal disruption and delays.

2. Management Pack Delays

When you purchase a leasehold property, a management pack is required. This will be supplied from the landlord or the management company. The pack must include service charge accounts and forecasts as well as building maintenance details. It must also include information about disputes, any planned works and insurance.

A delay at this stage is often due to the fact that landlords and management companies can be slow to respond. To overcome this, our conveyancing solicitors in Peterborough will request the pack as early as possible. In addition, we will follow up and chase on a regular basis to avoid a delay at this stage.

3. Mortgage Lender Checks

Mortgager lenders have strict requirements regarding lease terms. If, for example, a lease has high ground rent or doubling rent clauses, it will not meet their criteria. This means that it may need renegotiating with a conveyancing lawyer. This can lead to delays in the leasehold property transactions while alternative mortgage arrangements are made.

Our conveyancing experts in Peterborough work closely with mortgage lenders. This enables us to identify concerns early on so we can advise on solutions before potential delays arise.

Need help managing your leasehold property transaction? Call our professional conveyancers in Peterborough now to see how we can help you.