If you find yourself considering selling a leasehold property, what should you do?

February 23, 2015 by Rob Kahl

Last week I wrote about the things to look out for when purchasing a leasehold property but what if you find yourself considering selling a leasehold property, what should you do?

Well before you even start it is important to get as much information as you possibly can. Any prospective purchaser will want to be in possession of all of the facts regarding the lease and any charges before proceeding and there is nothing worse than agreeing a sale for it only to fall through later because of something within the details that could have been resolved sooner or made available earlier.

I also think it is important for your agent to be made aware of all of the details and to display them clearly on the property details so that possible buyers can make an informed decision when considering offering.

Also management companies are well known for being slow in giving out information so any details you can get before you agree a sale or commence marketing will greatly speed up the conveyancing process once you have agreed a sale and avoid any delays.

You will need to know the term of the lease remaining. When it was first issued, how long it was and how long is left. Also who the freeholder is. People like to know if it is just an individual who lives within the building or a massive company that has hundreds of freeholds and runs them as a business.

What ground rent does the freeholder charge and when is it next due to be reviewed and will it likely increase?

If the lease is relatively short, I.e under 85 years, enquire how much it will be to increase the lease to at least 99 years but preferably as long as you can get away with. It may not be essential for you to implement this yourself but is something that the buyers will want to know for the future.

Who the managing agent is, are they a local company or a committee of residents? How you pay the managing agent? Is it a monthly charge, quarterly or annually?

How much are the charges and what do they include? Some blocks include some of the services as well as other charges like buildings insurance and general maintenance.

Is there a sinking fund for any BIG JOBS? Things like roof repairs or external decoration? If so how much is in the fund and are there any jobs that are due in the future?

Little things like this might sound boring and not worth the effort but they will make the process a lot easier for you and your buyer and make the whole transaction run a lot smoother so worth considering.

Ths article is by Rob at Scott & Stapleton Estate Agents
Tel: 01702 47 11 55