Leasehold Property. The Essentials

We handle residential conveyancing transactions on a daily basis, including freehold, leasehold and new build properties across the Fylde Coast.

Leasehold conveyancing involves additional legal complexity because the buyer is acquiring the right to occupy the property for the remaining term of the lease rather than owning the land outright. Most leasehold homes are flats, although some houses are also leasehold.

A leasehold purchase requires careful review of the lease itself, including the remaining lease term, ground rent, service charges, repair obligations, restrictions on use, management arrangements and any planned major works. These issues can affect future costs, mortgageability and resale.

Ground rent also needs to be considered carefully. For most new residential leases granted on or after 30 June 2022, ground rent is restricted to a peppercorn, effectively zero, although older leases may still contain ground rent provisions.

The remaining length of the lease can also be important. A shorter lease may affect value and a lender’s willingness to provide a mortgage, particularly as the term approaches 80 years. 

At MJV Solicitors, lease terms and management information are reviewed carefully so that potential risks and ongoing costs are identified before contracts are exchanged.

For more information about the conveyancing process and how MJV Solicitors can help, read our complete guide to Residential Conveyancing.

Leasehold Property FAQ

Is leasehold riskier than freehold?
Leasehold ownership is not necessarily riskier, but it can involve more legal complexity and ongoing costs. Buyers need to understand the lease term, service charges, ground rent where applicable, repair obligations, restrictions and management arrangements before proceeding.
Can lease terms be changed?
Sometimes. Lease terms can be varied by agreement between the leaseholder and freeholder, and in some cases an application can be made to a tribunal if agreement cannot be reached. GOV.UK
Do leasehold purchases take longer?
They can. Government guidance says leasehold purchases can often take a few weeks longer than freehold purchases because of the additional information and legal checks required.