Selling a Leasehold Property

What is a leasehold property?

Leaseholds are not the same as freeholds, which are properties where you own the building and the land it sits on outright. It’s generally considered easier to sell a freehold property because of the outright ownership, but that doesn’t mean you can’t attempt to sell a leasehold property. If you own a leaseholder property that means you own a house or flat on land that somebody else owns. You will sign a contract with the freeholder who will allow you to live in the home for a certain duration of time in exchange for an annual rent. However, in the case of short lease houses and flats, at the end of the leasehold term the ownership of the property may return to the freeholder unless you extend your lease. Further information regarding leasehold extensions can be found on the website of The Leasehold Advisory Service. It’s said that most of the flats throughout England and Wales are leasehold properties, so if you live in a flat then there’s a very good chance you are under a leasehold agreement. The duration of most leasehold agreements last for 99 years, although they can sometimes be much shorter at 40 years or much long at up to 999 years in certain cases.

What is the process of selling a leasehold property?

You can expect the process of selling a leasehold flat or house to be a little more complicated than selling a freehold property, so expect it to require more time and paperwork. First, you need to find out much time is left on your leasehold agreement because the shorter the remaining duration, the less attractive it will be to a prospective buyer. When you try to sell your leasehold it’s crucial that you know all of the terms of the remaining agreement, because the purchaser will have to comply with all of these requirements. This process is called “assignment” and you’ll find that most leasehold agreements include assignment clauses detailing how the sale process should work. This can be a complicated process, which is why you should hire a solicitor to help with it. After you have your various pieces of paperwork in order you need to decide which option you’re going to choose for selling your home, including through an estate agent or selling to a quick property buying company that will give you a fast sale of your home.

Because leasehold agreements might be less desirable to home-hunters than freehold homes, you might want to enlist the help of an estate agent who can help to market your property. They will create a listing and promote the home, and also hold viewings of your place. But there’s no deadline for when houses sold this way might sell, and you’ll also have to pay the estate agent fees, so it’s not a great solution if saving time and money are your major concerns. Alternatively, you could try contacting a company that promises to make a swift purchase of your home for a competitive cash amount. These businesses specialise in helping to accelerate the sale process, and they won’t be turned off by the fact that it’s a leasehold home. Another benefit is that you won’t typically have to pay these businesses any fees to sell to them.