Say 'No' to leasehold property

It goes against the grain to advise a client not to proceed with a property transaction, especially when the client has his or her heart set on purchasing the property.  However, as a responsible legal advisor we need to less afraid of saying ‘No’. 

Leasehold property is attracting a lot of negative press of late, and is the focus, as we know, of Government attention .  The temptation is to look at this as yet another ‘scare story, and one which, in time, will blow over. The reality is it is unlikely it will, and if anything, it is likely to get worse before we will see any improvement.  It's therefore dangerous, and potentially negligent, for conveyancers to stick their head in the sand and ignore the many warning signs appearing on a daily basis. 

Doubling rent review clauses and provision for rent increase at regular issues are presenting a major hurdle for those who are looking not only to buy, but also sell, leasehold properties. It was only yesterday that an estate agent called to enquire why we were advising a client to withdraw from a transaction when the agent was aware other properties in the same development had recently sold. 

It is now recognised that it will be more difficult to sell a leasehold property which has a doubling ground-rent charge that rises after 10 years. This doubling of ground rent may have an impact on the marketability and mortgageability of the lease when selling or buying with such a clause. Some lenders may not agree to offer a mortgage on a property with a doubling ground rent. Nationwide has formally started declining mortgage offers which include a doubling ground rent clause.

At present its a lottery as to whether a lender faced with one of these clauses with be prepared to lend. In the light of this, and the ever changing lender landscape, would it be sound advice to allow a client to purchase a property subject to a lease with one of these clauses? I would submit it would not, unless the lease could first be varied to remove the offending clause.  Some conveyancers looking to avoid the delay and cost of seeking a lease variation, advise clients to take out indemnity insurance.  I am not sure I agree with this because insurance only acts as a sticking plaster, and not as a cure. Furthermore, even if the lender is happy to accept insurance there is no guarantee that other lenders will be minded to accept the policy when it comes to sell/remortgage. Moreover, lender policy seems to be changing these days quicker than the wind. 

There is also a danger of some conveyancers becoming too fixated on what the clients lender is saying about the clause and ignoring in the process the best interests of the lay client.  It is unsafe to assume that just because the lender is happy to proceed, that the client will also be content to continue.  The client needs to be made aware of the dangers of purchasing a property with one of these causes in the lease, and in my mind advised not to proceed with the transaction. 

If the client disagrees then a letter setting out your advice should be sent and the client should be asked to confirm instructions in writing notwithstanding the advice. The client should be warned along that this type of rent review clause may:

• be costly to the client as the rent increase (although as it gets more expensive this won't be during the clients life time);

• stop a future buyer from getting a mortgage as mortgage lenders do not like doubling ground rent clauses (it might even prevent the client from re-mortgaging);

• cause an issue on sale as the buyer doesn't want to buy a property with ground rent that doubles; or

• reduce the property's value (the ground rent liability makes the property less valuable).

This represents a serious issue for conveyancers, and until Government makes these clauses illegal, conveyancers should be saying ‘No’ more often than I fear is happening at present.

David Pett - Solicitor  

MJP Conveyancing are solicitors who provide legal advice and services to clients based in England and Wales and who can be contacted on 01603877067 or via email at davidp@mjpconveyancing.com

Fire and Asbestos within Conveyancing

There seems to be a lot of uncertainty within the conveyancing community as to when and in which circumstances Fire and Asbestos Assessments should be sought.

In this article I attempt to demystify and offer some clarity.  

Fire

The Regulatory Reform (Fire Safety) Order 2005 became law in October 2006 and introduced significant change to workplace fire safety responsibilities. It also  simplified the legislative regime by bringing all fire safety legislation together into one Order. Essentially it introduced the need for employers, building owners and occupiers as 'responsible persons' to carry out, implement and maintain a fire safety risk assessment. That is someone who has been trained to do so!

A 5-step fire safety risk assessment checklist is available to help 'responsible persons' carry out and implement a risk assessment in their premises.

All non-domestic premises including the common or shared parts of blocks of flats or houses in multiple occupation are covered by the Order, and may be inspected by their local Fire and Rescue Authority. Under the Order, Fire and Rescue Authorities have a statutory duty to ensure compliance and enforce the requirements where necessary.

As well as the check-list setting out what is required within an adequate risk assessment, an on-line form is available to help check the extent to which the assessment will comply with legislation.Fire risk assessment guidance: 

http://www.sure-firesolutions.co.uk/documents/PAS-79.pdf

What does this mean for conveyancers?

It is clear that when acting on the purchase of a leasehold property or a freehold property where there is shared land or facilities a copy of the fire assessment should always be sought. If the seller is not able to supply it the seller should be asked to obtain an assurance from the Freeholder/Management Company one will be sought and made available within a reasonable period of time.  

Health and Safety  legislation has the allowance of 'reasonable steps' being taken to comply. If there is a plan in place to assess at some stage in the future  this may help to avoid immediate enforcement action and it might therefore be wise to ask the seller to provide confirmation from the Freeholder/Management Company that there is at least a plan in place to undertake the assessment.

If the client is to acquire an interest in the Freehold/Management company then there is a need to warn the client of the risk of enforcement for so long as it takes to supply the assessment.  

Asbestos

As like the above the common areas of domestic buildings e.g. halls, stairwells, lift shafts, roof spaces give rise to a ‘duty to manage’ asbestos under the Control of Asbestos Regulations 2012.

The duty requires you to manage the risk from asbestos by:

■ finding out if there is asbestos in the premises (or assessing if ACMs are liable to be present and making a presumption that materials contain asbestos, unless you have strong evidence that they do not), its location and what condition it is in;

■ making and keeping an up-to-date record of the location and condition of the ACMs or presumed ACMs in your premises;

■ assessing the risk from the material;

■ preparing a plan that sets out in detail how you are going to manage the risk from this material;

■ taking the steps needed to put your plan into action;

■ reviewing and monitoring your plan and the arrangements made to put it in place; and

■ setting up a system for providing information on the location and condition of the material to anyone who is liable to work on or disturb it.

Essentially this means the Freeholder s legally bound to identify the presence of suspected asbestos containing materials.

What does this mean for conveyancers?

It is clear that when acting on the purchase of a leasehold property or a freehold property where there is shared land or facilities a copy of the assessment and records should be sought. If the seller is not able to supply the assessment the seller should be asked to obtain an assurance from the Freeholder/Management Company one will be sought and made available within a reasonable period of time.  The client should be warned that there is no assessment and to make the client’s surveyor aware of this and to seek advice.

If the client is to acquire an interest in the Freehold/Management company then there is a need to warn the client of the risk of enforcement for so long as it takes to supply the assessment.

Remember as a Freeholder the assessment once prepared need to be made available to all contractors (particularly electricians, gas-fitters and plumbers) carrying out work on the premises and if the assessment proves to be incorrect  the client as a Freeholder could end up in Court.  The client should be advised to get a competent gas fitter or electrician round (or even asbestos surveyor) and see if there are  suspect materials. If found the client should either get them analysed or get a full survey carried out.

Further guidance can be found here: http://www.hse.gov.uk/pubns/INDG223.pdf

MJP Conveyancing are solicitors who provide legal advice and services to clients based in England and Wales and who can be contacted on 01603877067 or via email at davidp@mjpconveyancing.com

Understanding Leasehold title plans

In October 2014 the Land Registry changed its policy on how it creates Leasehold Plans.

Before the 20^th October the Land Registry looked to replicate the intricate details from the large leasehold plans showing the precise layout of property at a large scale.

The problem with this was that this was often potentially misleading when considering the smaller scale Ordnance Survey maps used by the Registry.  

A review of this practice revealed a variance in approach and for this reason a change in policy was needed to make sure that the focus on the mapping of leasehold floor levels was put back on the lease plan.

The new policy still requires the Registry to show the extent of the land in a lease but when it comes to dealing with larger developments this is more likely to be recorded on the landlord’s title with the tenant’s title plan showing only the outline of the building as shown on the Ordnance Survey Plan

By adopting this new approach the Registry hope it will be easier to understand the position of all the leases granted out of a registered title in relation to each other on one title plan.

Completion of a leasehold floor lever registration, according to the Registry, without any limitation in the extent of other rights, interests demised, guarantees the title granted to the tenant notwithstanding how the red edging on the title plan is drawn.

However these changes in policy will no impact on the results issued on searches of the index map, 0S2 applications and a Map Search.

In practice we will be seeing a change in the note attached to the tenant’s title plan.  This is now likely to record that the land will lie within the area edged red but which is more particularly described in the lease or leases.

None of these changes impact on the need to submit a Registry compliant plan when registering a title for the first time - that is making sure the following requirements are met:

• a site plan showing detail in relation to the Ordnance Survey map

• plans of each floor level

• a recognised scale for both the site plan and the floor level plans

• a North point

• clear edging showing the land demised by the lease. The location plan and the      detailed floor level plan can be separate plans.

Clients Guide on what to check with their conveyancer when purchasing a leasehold property

You instruct a conveyancer to act and look after your interests when purchasing a leasehold property.   You go to that conveyancer to ensure he exercises the skill and care required to ensure that the property you are purchasing can become a home free of legal issues.  

As part of that due diligence process your conveyancer will send to you information about the lease as well as a copy of the lease for you to read through.   He will if he does his job correctly identify what might be wrong with the lease and what he suggests should be done to sort any problems.

This may all be very daunting and in effort to help you understand what to look for and what to query if your conveyancer fails to cover an aspect I have set out below some ( and it’s not intended to be an exhaustive and comprehensive list )  common points to keep in mind:

Have you been provided with a completed copy of the lease?

Has your copy been signed?

How many years does the Lease have to run?  If the remaining term is under 80 years you should seriously consider pulling out unless the seller is prepared to arrange for the lease to be extended before you purchase.

Does the property description in the lease mirror the property you are looking to purchase.  Check the lease plan against the floor layout shown in the sale particulars.  Take the plan and carry out a physical inspection of the property to check for discrepancies.

If you are told there is a garden and or car parking space then make sure this is included as part of the description of the property you are purchasing.

What parts of the property and the amenities are you required to share with other tenants?

Is there a right to pass to and from the property from the closest public highway? If not you may find that someone else could legally prevent you from accessing the property.

How much is the annual ground rent and service charge – can you afford these remembering they can increase depending on the clauses in the lease and the expenditure incurred by the landlord in the upkeep of the building and communal areas.

Check the rent review clause - the ground rent might only be £250 per annum at the time of purchase but this could by the end of the term be as much as a million pounds per annum!

Is there a management company and if so is it properly run and has accounts to show that it takes its responsibilities seriously.

Is the property adequately insured? 

What are the restrictions on use of the property?  Can you sub-let for instance and if so what conditions have to be met?

Even though the landlord is responsible for the upkeep of the property you should always get a survey undertaken since if there is major work required you and the other tenants will be required to contribute to that cost however much the expenditure might be.

Finally do consider carefully whether a leasehold property is for you  - many conveyancers including myself advise clients not to purchase this type of property unless there are very compelling reasons so to do. 

Morgan Jones and Pett are solicitors who provide legal advice and services to clients based in England and Wales and who can be contacted on 01603877000 or via email at davidpett@m-j-p.co.uk

How does my lender affect my leasehold purchase?

Article by Katie Easter -  Trainee Solicitor with MJP Conveyancing 

Conveyancers acting for mortgage advisers are under the same obligations to the lender as they are to their purchasing clients. 

These obligations include adhering in the main to the CML Handbook, a set of rules written by the Council of Mortgage Lenders which must be followed when acting for mortgage providers.

How does the CML Handbook affect Leasehold property?

The nature of leasehold property means that there are more factors that can lead to it diminishing in value compared to freehold property.  Mortgage providers therefore seek to protect themselves should they need to repossess a leasehold property by imposing strict requirements. Solicitors are obliged to ensure that leasehold property meets these requirements.

One of the biggest factors affecting the value of leasehold property is the term of years remaining on the lease following completion. Each mortgage provider that subscribes to the CML has their own minimum term of years requirements. If the term of years remaining is predicted by the valuer incorrectly, it is important for solicitors to notify their mortgage provider clients accordingly. This is one of the reasons that we must have sight of the Mortgage Valuation Report prior to exchange.

There are also requirements for particular terms to be included in leases. These include the need for other leasehold properties in the block to provide support and shelter to the flats around them. When we review leases we are ensuring that they contain rights to support and shelter from the neighbouring properties. Without these rights, purchasers of leasehold property could face expensive repairs should neighbouring properties fail to support and shelter their own. This could affect a borrower’s ability to pay their mortgage and is therefore a concern of mortgage providers.

Ground rent should also be checked to ensure that there will not be any sharp increases which could affect a borrower financially. We will check the lease and may raise further enquiries with the Vendor’s solicitors regarding this point.

It is also important to gather information about any management companies. The following items must be obtained and checked by solicitors:

1.       The lease or another agreement with the management company must give the company a right to enter the property to carry out repairs or other works.

2.       The last three years accounts of the management company should be obtained.

3.       Any details of major works that will be paid for with service charge should be obtained. It will be necessary to notify a mortgage provider if these cannot be satisfactorily obtained.

The obligations that MJP Conveyancing owe to their clients’ mortgage providers therefore govern some of the leasehold enquiries that we raise with Vendor’s solicitors. Regrettably, this can lead to some delays when purchasing leasehold property but it is important to retrieve these answers for both our clients and their mortgage providers. 

This is also why we always ensure that leasehold packs are ordered from management companies as early as possible when we are acting for clients that are selling their leasehold properties. 

The Death of Leasehold Exit and Sub-Letting Fees?

There is great speculation surrounding the future of fees charged by Freeholders and or Managing Agents on the subletting of leasehold property.

This follows news that the Law Commission is going to examine the right to charge such fees as well as leasehold exit fees charged when selling or renting out a retirement flat.

According to the Leasehold Knowledge Partnership speculation is rife that such fees will be outlawed for good. 

The Partnership reports on its website:

‘This means anyone selling or renting out a retirement or non-retirement flat should keep all documentation with a view to making a claim in two and half years time’.

It adds:

‘LKP is deluged with inquiries about subletting fees, often where freeholders and their managing agents are plucking figures from the air for a sublet consent.

The tribunals have dealt with countless cases, but there is no binding decision on what would be a fair sublet consent (most freeholders have to give consent to a sublet, usually followed by the word “such consent not to be unreasonably withheld”.

The retirement sector is further complicated because some sublet fees are contributions to the contingency fund and some are set at one per cent of market price.

One family at Gibson Court, in Hinchley Wood, Surrey had to pay a sublet fee of £2,500 into the contingency fund last January.

McCarthy and Stone this month dropped the one per cent contingency charge at all sites where it is the freeholder in favour of an £80 plus VAT fee’

MJP Conveyancing are solicitors who provide legal advice and services to clients based in England and Wales and who can be contacted on 01603877000 or via email at davidpett@m-j-p.co.uk

Leasehold Property and the CML Handbook

When acting for a client who is purchasing a property with the aid of a mortgage, a conveyancer is under an obligation to act within accordance of the duty of care to their client but also to the lender, writes Alice Seager, trainee with MJP Conveyancing.

The duty to the lender  is governed by the Council of Mortgage Lenders, who describe themselves as "the representative voice for the residential mortgage lending industry". 

They are  an industrial body representing mortgage lenders in the UK - its members consisting of banks, building societies and specialist lenders. It is estimated that the Council of Mortgage Lenders (CML) represents 90% of mortgage lending within the UK

Leasehold transactions are long accepted to involve extra work for conveyancers - it is imperative that onerous obligations are brought to the attention of clients. There are issues such as ground  rent and service charge etc to be brought to consider - but further the CML hand book imposes further conditions which are required in a leasehold transaction.

As such conveyancers are obliged to ensure that the lease applicable to the title of a leasehold property is "CML Compliant". The effect obligation renders the process of purchasing leasehold property to be arguably a complex one. This is particularly the case with older leases drafted prior to the introduction of the CML handbook.

The Basic Requirement of CML:

CML requires conveyancers to confirm that there is a good and marketable title to the property. Meaning that the property is free of any restrictions, covenants, charges  etc which are materially detrimental to the value of the property.

It is arguable that leasehold properties by their nature tend to be inclusive of more restrictions and covenants than a typical freehold transaction. Therefore there are more aspects to consider when determining whether or not it is possible to guarantee that a property has a good and marketable title to a prospective lender.

CML Leasehold Requirements:

The first issue that a conveyancer should consider when reviewing leasehold title is the class of title that the Land Registry have granted. Ideally, this should be title absolute. Meaning that the title deeds are in order and that no other individual has a claim to the land. In respect to leasehold property, this means that the lease has been validly granted and that the lease under which the land is held is vested in the freeholder.  

Where an inferior class of title is granted the CML provides that good leasehold title will be acceptable, provided certain other requirements are fulfilled. Good leasehold title is granted when the lessor's title is not registered with title absolute or the title is unregistered. I.e the leasehold title is registered but the freehold is not. 

In this instance a conveyancer should be satisfied that there is evidence of the freehold title which dates back 15 years. Although the CML are providing instances where good leasehold title is acceptable - in practise this is not necessarily of much assistance to a prospective purchaser. If it is possible to provide evidence of the freehold title back dating 15 years, then it is highly likely that the Land Registry would upgrade the preferred class of title absolute and remedy the problem.

It is a further requirement of CML in leasehold transactions that the lease includes an enforceability covenant rendering it an obligation on the landlord to enforce other lessees covenants. The effect of not having such covenant in place is that a lessee, who is for example suffering  nuisance from a fellow lessee does not have the ability to force the landlord to resolve the problem. 

Conveyancers are required to further ensure that the responsibility for insuring the property is that of the landlord, one or more of the tenants or the management company. Conveyancers must be satisfied that there is a sufficient insurance policy in place for the leasehold property. There is no consistent approach to the issue of insurance, as times evolve the definition of "insurable risks" changes. For example, when older leases dating back to the 1970s and 1980s were drafted the need to insure against the risk of terrorism was not one contemplated.

If the Lease is not CML compliant?

If throughout the course of a transaction, it is deemed that a lease is potentially not compliant with CML requirements - the first course of action is to notify the lender and obtain their instructions. The onus is then often reverted back as the lender instructs the conveyancer to act in order to protect their interest.

The defect in the lease will then require rectification and there are few options available to clients in this situation. The first option is for the lessee and the landlord to enter into a Deed of Variation to alter the terms of the lease in order to comply with CML requirements.

Alternatively, lenders will often accept indemnity insurance in order to "remedy" the defect with the lease. However, prospective purchasers should note that this route will merely offer a "quick fix". Wherever possible conveyancers should seek to obtain a Deed of Variation to truly correct the defect.  

It can therefore be concluded to establish that a lease is CML compliant "is not the be all and end all". 

There are practical implications of the various covenants which must be taken into consideration by conveyancers when reporting to clients intending to purchase a leasehold property and these implications typically do not concern the CML.

Morgan Jones and Pett are solicitors who provide legal advice and services to clients based in England and Wales and who can be contacted on 01603877000 or via email at davidpett@m-j-p.co.uk

Caveat emptor - Leasehold buyers beware!

The difference between freehold and leasehold is if you own a leasehold property you do not own the building or the land it sits on, instead you have the right to occupy the property for a fixed period of time. 

Here, writes Charlotte Ribbons, Trainee Solicitor with MJP Conveyancing, are some areas savvy leasehold buyers need to make sure they are clued up on before purchasing: 

The 'term' of the lease is important. This can typically be between 99 and 999 years. Mortgage companies will usually require there to be 70 years remaining on the term before they will lend. This is an area cash buyers should not ignore because if you later come to sell the property to a buyer needing a mortgage this will matter! It can be costly and time consuming to extend the lease term; what might seem like a 'bargain' may not be in the long run. 

Ground Rent - know your figures! This is the rent payable to the Landlord or Freeholder. It can be fixed or escalating. Your solicitor should draw this to your attention. Where there is a complex escalating clause you may need to seek further advice from a surveyor. 

Service Charge - it's important not just to know what this years’ service charge is going to be but what future service charge costs are likely. The Lessor Pack should include the statements of accounts for the last three years. Does the charge keep increasing? If so, why? 

If the accounts aren't in a healthy state this should ring alarm bells. Find out more about the Management Company and how efficient they are. The best way to do this is to speak to existing tenants and see what they have to say. 

It is possible that the service charge accounts for the current year are not yet finalised. In this circumstance your competent solicitor may seek a ‘retention’ to cover this. This would mean a sum of monies from the sale proceeds are held back to pay for this cost once the amount is known. 

Survey - the importance of having a survey carried out cannot be emphasised enough. Whilst the Lessor Pack can reveal major works which are anticipated, a survey will also be a valuable tool in this regard. If major works are required, once you become the owner of the property you will be responsible for paying a proportion of the cost. What may seem like a bargain may not be quite the investment, once factoring in paying towards the cost of a new roof!

Flooding- Just because you may be occupying the third floor does not mean flooding will not affect you! If the ground floor is flooded you will not be able to access your property, structural damage may be caused and key elements such as lifts may not function. Estimates from the British Property Federation and Leasehold Knowledge Partnership show 70,000 leasehold properties are at high risk of flooding. 

This could leave you at risk to potentially huge increased premiums, particularly as it is still unknown, but considered likely, that leasehold property will be excluded from the national flood subsidy scheme.  

The key to purchasing a leasehold property is to make sure you know exactly what you are purchasing, what your obligations and what the likely costs are now and in the future! 

Disclaimer: Please note this article does not constitute as legal advice and is for reference only. 

Service Charge – Could the monopoly finally be coming to an end?

Forward

Our business attaches a high value to training and as such we actively encourage all of our junior staff to compile articles on subjects which are of interest and which contain elements which will be of interest to consumers. 

In the first of these articles which forms part of our current training programme running for the next two months involving leasehold Kris has chosen a topic dear to any one which has purchased a leasehold property in the past.      

The article focuses on the hidden costs of purchasing a leasehold flat or house and of the efforts being made to bring about the long overdue changes needed to ensure this sector of the housing market is adequately regulated.

Kris would welcome your feedback and can be contacted at KristianN@mjpconveyancing.com

David Pett Director

5/3/2014

Kris writes:

As conveyancing business with over 100 live leasehold transactions at any point in time, a major conflict which we attempt to placate and pacify on a daily basis is the freeholder versus leaseholder battle of power.

We act as a bearer of bad news for both buyers and sellers alike. Buyers often lambaste the service charge budget as a ‘hidden cost’ before they've even made it over the proverbial threshold, whereas sellers grumble at the expense and length of time it takes the autocracy like institution that is their management company to produce a standard sales pack.

As a neutral in the on-going saga, I have always felt that it is the freeholder who dictates the balance of power. The seller is unable to sell without the freeholder’s intervention and likewise, the buyer is unable to register their purchase without seeking the infamous ‘certificate of compliance’ from the management company. However, much like the Boston Tea Party signified the beginning of a turning of the tide in the American War of Independence, it appears that the Office of Fair Trading have sparked a similarly rebellious (but considerably drier) attitude among leaseholders.

Times are changing

The Office of Fair Trading (OFT) will fully investigate the love-hate relationship at the centre of the leasehold property market and has pledged to issue a report by the end of 2014. In particular, the OFT will seek to identify:

1.   Whether managing agents and freeholders have the same interests as leaseholders in, for instance, keeping down costs for maintenance work or building insurance;

2.   Whether leaseholders have adequate interest on decisions taken by freeholders on the appointment of managing agents and the supply of residential property management services;

3.     Whether there is true competition between property managers;

4.  Whether the choice of contractors and services to leasehold properties may be unfairly influenced by links with associated companies;

Rachel Merelie, Senior Responsible Officer for the investigation comments that “Service charges for the maintenance of a building can be substantial and we want to make sure that leaseholders are getting a fair deal”.

Monopoly

In my opinion, the current market is far too slanted in favour of the freeholder and whether leaseholders do get a ‘fair deal’ is largely dependent upon chance.

As responsible conveyancers, it is our duty to alert any potential leasehold purchaser of the added (and often unexpected) costs that they will be liable for throughout the entire term of their ownership. Does the building require a new lift? Yes – then as a leaseholder you will be expected to pay for this. What about landscape gardening? – check, decoration of the lobby? – check, tropical fish for the aquarium? – check.

A competent conveyancer should flag up the service charge budget in the management pack for you to study in depth, and the decision about whether this is fair and reasonable should be made well before, returning to our cliché, you ‘cross the threshold’.

The same should be said of selling a leasehold property.

A complaint we often find levied upon freeholders is that leaseholders are not made aware of the substantial (almost always triple figure) costs and turnaround times involved in obtaining a leasehold management pack – the notorious skeleton key when it comes to selling a leasehold property.

Relying on best practices we always seek to obtain this figure for prospective purchasers prior to completing their transaction so that, in years to come when they decide to sell the property, they do not find themselves burdened with this unexpected and untimely cost.

Again, this serves as a further example of when you should push your conveyancer to seek all the information on your behalf rather than neglect due diligence in favour of a quick completion.

Advantages amongst the autocracy

Buying a leasehold property should not be considered a completely wasted investment however:

1.   There are clearly defined rules in place which will prevent neighbours devaluing your     property;

2.    If you are ‘time-poor’, it makes perfect sense for somebody else to address maintenance issues on your behalf;

3.    There is a clear agreement upon what proportion you are to pay if urgent remedial work is necessary on the building;

4.    Statutory protection for leaseholders does exist;

5.    Historically, leasehold properties are marginally cheaper than their freehold equivalent.

At MJP, we utilize an online case management system called Quick Conveyance that puts all those ‘need to know’ facts figures into one place at your fingertips for you to consider and weigh up prior to buying your leasehold property. We make sure the lease, the management pack and all leasehold enquiries are made available to you online in PDF format so that the only time you are truly ‘in the dark’ with your leasehold purchase is when you turn the lights off to settle down for your first night’s sleep post-completion.

For a competitive quote, please call our New Business Team, available 24/7 at www.mjpconveyancing.com .

By Kristian Nelson, Trainee Solicitor at MJP Conveyancing