Flats and maisonettes are generally sold on the basis that the buyer will own them for period of years. This called a leasehold interest. Some houses are even sold on this basis.
Special care is needed when buying such properties. In particular a buyer should have regard to the following:-
- The length of the outstanding term needs to be greater than 60 years because some lenders will not lend if the term is less.
- The contents of the lease have to be checked to establish who has the legal obligation to repair and maintain the property.
- If a management company is involved the buyer must make sure that all sums have been paid up to date and that there is not going to be a substantial increase in maintenance charges in the near future.
- In certain circumstances, owners have the statutory right to extend the lease and join with other owners to buy the freehold.
SH&M have wide experience in buying and selling leaseholds and as a matter of course would advise on all these points.