Buying + Selling
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Buying leasehold – what you need to know New year, new property – many people are making plans to buy a flat this year, whether as a home or an investment. In this article, Jessica Lippiatt explains how leasehold rules affect your rights as an owner. If you’re looking to buy a flat in South Bristol this year, there’s a good chance you’ll view at least one of the many new apartment developments, or an older property that’s been divided up. Most of these properties will be leasehold rather than freehold – as will some houses – and there’s often some misunderstanding about what this means. Whilst you shouldn’t let popular misconceptions about leasehold properties put you off, it’s still important to understand how they differ from freehold before you invest in one. Leasehold means that you own the property, but the land on which it stands belongs to the freeholder. In a nutshell, if you’re a leaseholder you own and are responsible for maintaining everything within the property’s four walls. Freehold, on
the other hand, would mean that you own the land upon which the property stands. So if you own the leasehold on your property, what happens? The lease between you and the freeholder will outline your rights and obligations and entitle you to occupy the property for as long as it lasts – generally this will be hundreds of years in the case of new properties, but with older buildings your solicitor will need to check the time left on the lease carefully before you commit to buying. Owning the leasehold will also commit you to paying costs such as ground rent (usually a nominal sum) and service charges, which can range from a few hundred pounds each year to thousands. Identifying whether a lease exposes you to costs such as this is part of your solicitor’s job.
BEDMINSTER 31 North St, Bristol BS3 1EN HORFIELD 374 Gloucester Rd, Bristol BS7 8TP QUEEN SQUARE 49/50 Queen Sq, Bristol BS1 4LW
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The important thing is to ensure that the lease protects your own interests. The important thing is to ensure that the lease protects your own interests. No two leases are ever the same, so you should always have a legal expert review the terms to clarify your rights and responsibilities. Barcan+Kirby has six offices across Bristol and Gloucestershire and a team of solicitors experienced in all areas of buying and selling. Professional advice, simply stated.
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