ASK ROSS: This month, Ross reassures buyers moving away from Sheffield and explains the quirks of the leasehold/freehold system…
Our eminent residential property expert, Ross Ward, answers your questions about moving home. If you have a query about buying or selling, email marketing@tayloremmet.co.uk
I am moving from Sheffield to Brighton. Can the same solicitor deal with the sale of my current house and the purchase of the new one?
It is normal to use the same solicitor for both transactions, as coordination is required.
I suspect you will be completing the sale and purchase on the same day and to use two different solicitors would complicate matters when you exchange contracts and the money is transferred.
If the completion dates are the same, you will not want to exchange contracts with your buyer – which commits you to the sale – without exchanging on your purchase.
Most solicitors in Sheffield have experience of buying properties across the country, but you will need to commission a local surveyor, as his/her knowledge will be essential to spot any pitfalls. A more detailed survey, such as a Homebuyer’s Report, will flag up any points your solicitor ought to be aware of that may be particular to the area.
It is also a lot easier to communicate with just one solicitor and it will probably necessitate only one visit to sign the relevant documentation.
What is the difference between freehold and leasehold land?
Freeholders own their land outright. A leaseholder owns the land for a fixed period only.
At the end of a leasehold period, the land will return to the freeholder unless the lease is purchased or extended under the Leasehold Reform Act. The leaseholder will normally have to pay ground rent to the freeholder and observe the terms of the agreement.
Whilst freehold interests are generally more desirable, many properties in the Sheffield area are leasehold. Local leases are often for a minimum of 99 years and can be up to 800 years with a fixed nominal ground rent.
Leases are granted to enable the builder or property developer to impose obligations and restrictions on neighbouring homeowners. Flats are almost always leasehold to ensure everyone contributes to mutual repairs.
Most building societies and banks will grant mortgages on properties provided there is a minimum of 70 years remaining on the lease. Anything below this timescale becomes a problem and the leaseholder would be advised to make an application to purchase the freehold or at least obtain a 50-year extension.
The rules relating to the purchase of the freehold on flats are much more complicated. Generally tenants own the freehold collectively in the name of a company, with each flat having a share and, therefore, a say in the management of the block.
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