Conveyancing Solicitor in Sheffield advises clients on the sale of a 200-year leasehold
When buying a new home, few consider the implications of exactly what legal title they hold to the property. Nevertheless, there are major differences in transacting freeholds and leaseholds to be considered by Conveyancing Solicitors in Sheffield.
While a freehold is an absolute title to a property, leaseholds only confer the right to live in the house for a limited number of years. During this time, the property can be sold, giving the buyers the right to live in the property for the remaining years on the lease. Lease periods tend to be very long, and typically range between 99 and 500 years.
Why Conveyancing Solicitors in Sheffield must advise clients to renew leases early
It is very important to renew leasehold properties well in advance. Once a lease has less than 80 years to go, renewing or selling becomes much more expensive.
This is because, once this deadline passes, “marriage value” has to be added to the price should the leaseholder decide to extend the lease. This term describes the increase of the house’s value accrued by the lease extension.
This makes sense, since if the leaseholder decides to sell the property during the lease period, he will get a higher purchase price if the lease period is longer. The law demands that the landlord and the leaseholder share this fee in equal parts. It is therefore vital that Conveyancing Solicitors in Sheffield advise their clients to extend the lease early as the extending process can take over a year.
The property was advertised by the Winkworth estate agents’ branch covering South Yorkshire, and Grindeys LLP were the property lawyers acting for the purchasers.
The property was sold with full title guarantee. This means that the seller guarantees that he or she is the rightful owner of the property and that there are no third party rights or covenants to the property. The buyers’ Conveyancing Solicitors in Sheffield will also insist on this to avoid future conflict for their clients.
Fridaysmove offer both leasehold advice and quotes for Conveyancing Solicitors in Sheffield. Call us today on 0330 660 0286.