Buying property can be an exciting if challenging undertaking. During a property transaction, there are a number of legal processes which must be carried out and so it is important to have expert legal support to ensure these elements are correctly handled. Conveyancing duties also vary depending on the type of property in question, and whether it is freehold or leasehold.
Many buyers wonder if conveyancing fees are different for leasehold versus freehold properties. The short answer is that there is generally more work to do and more parties to consult when carrying out conveyancing for a leasehold property and that will be reflected in higher fees.
Complex contracts
The contracts for leasehold and freehold properties can vary a great deal. With a leasehold property, the contract can be rather complicated and the lease may have many clauses, all of which must be thoroughly examined by the conveyancer. It is essential that you have a detailed understanding of the lease before proceeding with acquiring the property.
According to this recent report in The Guardian many leaseholders may be surprised to learn, for example, that putting the property on Airbnb is prohibited by the lease. A thorough conveyancer will ensure that any complex or potentially problematic clauses in a lease are identified and clarified.
With leasehold properties, there may be management companies to deal with and if fees are outstanding then there could be further issues that need to be resolved before the purchase can proceed.
A more straightforward process
Anyone buying a freehold property will be pleased to know that, in general, this process should be easier and proceed more smoothly. In buying a freehold property, there are no complex leases to negotiate and no management agents or management issues to unravel.
This is not to say it’s easy or can be attempted by amateurs. All aspects of the property and its deed must be checked thoroughly and the appropriate registrations carried out. But generally, as fewer parties need to be involved, this will reduce the amount of time needed for conveyancing and this will be reflected in lower fees.
As a freeholder, you will own the entire property, including the land that any buildings or structures sit upon, so all boundaries will need to be verified as part of the property acquisition process. If you are buying a flat, the situation may be slightly different, as you may have a lease for your property and a share of the freehold for the building. In this case, you will need conveyancing to cover both the freehold and the leasehold aspects which can make the process more complicated.
If you’re buying a freehold property and looking for freehold conveyancing quotes, then it would be a sensible idea to consult firms with a solid reputation in this field such as Sam Conveyancing where you can get a full breakdown of costs and services.
When you are buying any property, it is vital to have reliable and trustworthy conveyancing support to ensure that every aspect of your purchase is in order before you agree to exchange contracts. Any mistakes can be costly to address further down the line and it is much easier to resolve any issues before the transaction is completed. With experienced and reliable conveyancing services, you can remove the guesswork and much of the stress from the sometimes complex procedure of buying property in the UK. This is a worthwhile investment and will leave you with more time and energy to focus on the wider aspects of your property purchase.
