So, you’ve found the perfect flat, and now it’s time to put in an offer and go through the buying process. However, buying a flat can sometimes be a little more complex than a house. Here are some things worth considering to make the buying process and getting settled into your new property as straightforward as possible.
Is it freehold or leasehold?
If you’re buying a flat or maisonette, it’s likely that you are buying a leasehold property. This means that you lease the right to a property that belongs to someone else – a freeholder, who owns the bricks and mortar and land the property is built on. In its Long-term Plan for Housing, the government announced plans to reform how leasehold works in the UK, including plans to reform ground rent. Prospective leasehold buyers should familiarise themselves with future changes so they know what to expect.
It is recommended to engage the services of a lawyer who specialises in the legal aspect of buying properties, known as a conveyancer. Leaseholds are more legally complicated than freeholds so this may cost more, and you should get as many conveyancing quotes as possible. Make sure to find information about conveyancing quotes and match this to your budget so you don’t get a nasty surprise when it comes to exchanging.
Who manages the property?
A key thing to understand is who manages the property and how much service charges will cost.
How long is left on the lease?
It is very important that you understand how long is left on the lease. As the lease is depleted, the value of the property will fall. Also, mortgage lenders will normally not mortgage a property with less than 70 years on the lease.