LEGAL
insure the whole of the building and be responsible for paying the entire cost of the insurance. SUMMARY You should consider carefully which option is best for you, as both freehold and leasehold have their advantages and disadvantages.You should ensure you read through all the freehold or leasehold documentation carefully and ask your conveyancer any questions you may have prior to legal commitment.You can then enjoy your new home, safe in the knowledge that you are fully aware of your rights and obligations.
Rates and taxes – A lease would usually provide that the tenant is responsible for rates and taxes. Mortgage – you would need to make mortgage repayments if you take out a mortgage to fund your home. Freehold: Rates and taxes – As with leasehold you will be responsible for rates and taxes. Maintenance costs – You would be responsible for upkeep and maintenance of the whole as opposed to part as is the case with leasehold. Mortgage – You would need to make mortgage repayments if you have a mortgage. Buildings insurance – You would
are usually very few restrictions on what you can do with a freehold property.You should bear in mind, however, that you will have to comply with planning and building regulations if you decide to extend or alter a freehold property. WHAT CHARGES CAN I EXPECT TO INCUR? Leasehold: Ground rent – Generally, you would pay a ground rent to lease the property.Your conveyancer will advise as to whether the ground rent review clause is reasonable and how often the ground rent is reviewed. Service charges – this is a contribution towards the landlord’s/management company’s maintenance costs.The freeholder, landlord or management company might employ a managing agent to manage the communal areas and collect service charges. Buildings insurance – Generally, if you purchase a flat the landlord will be responsible for buildings insurance and you will contribute a proportion towards the cost.
If you are interested in a quotation for Shared Ownership Conveyancing, the Resale and Staircasing team at Prince Evans are on hand to provide a friendly no obligation quotation at rst@prince-evans. co.uk or 020 8840 7757
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