Are you thinking of buying a leasehold property?
There are many things to consider when you'rethinking of buying a leasehold property. The Association of Leasehold Enfranchisement Practitioners (ALEP) suggests finding about the following. Remember to always read the lease to find out what the restrictions are, as they will vary from lease to lease, and you can not assume that what is acceptable in one property is the same in another….
The Length of the Lease
Your lease will outline the length of time remaining on your lease.
Check with your mortgage lender
Mortgage lenders have different lengths of leases that they will accept, so you must check that the length of time on your lease falls within these guidelines.
Ground Rent and Service Charges
You will need to determine how much each of these will be. The lease will determine how much the Ground Rent might increase over time which is vital for budgeting. For the Service Charge, also find out what this service charge covers and does not cover. You will also need to determine the frequency of these payments.
Who is the Managing agent and freeholder?
Does the property have a managing agent and if so there will be a fee for this. You will want to know how much this fee and when this becomes due.
Any restrictions as outlined in the lease
The lease will outline any restrictions that exist and whether permission is required and for what. This is different for each property but could include items such as whether pets are allowed, or redecorating restrictions. If you were to go ahead and not have obtained the required permissions, then you may be in breach of your lease that could easily have been avoided.
Being fully informed will help you make the right decision for you; it will ensure you have examined
all the costs as well as any restrictions that you need to consider.
BW Residential Ltd
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