Whatever the nature or your legal agreement, be sure to take the time to understand what you are committing yourself to prior to signing it. This is especially relevant when buying a leasehold property - knowing what you are agreeing to will mean no nasty surprises later on and you'll be able to look forward to your purchase with confidence.
Your leasehold flat awaits your occupation. One issue plays on your mind: you are thinking about extending the lease before it drops below 80 years. Perhaps, waiting a little longer before making the move will be worth it. If you want to get your property to the top of the market, it makes sense to extend your lease. Before you get deep into the process, it's sensible to know what you are signing for.
Surely you want your rights and responsibilities easily explained?
Knowing what to expect and what is expected from you when acquiring and extending the leasehold brings great peace of mind. It may seem obvious but you will be required to keep the flat in good order, and ensure all occupation or utility costs like council tax, electricity and gas are met on time.
As a leaseholder you will be expected to pay the ground rent every year. Service charges will also be applicable to you for part of the maintenance cost of the building.
However, leaseholders have more rights than you might realise. It's sensible to know what to expect and understand which of the issues will work for you rather than against you. Knowing what to expect will mean you can be prepared.
A lot of rights are set out by law but you can also find a lot of advice before you speak to a specialist lawyer. Here we give you a sample:
- get UK contact details for the landlord
- seek recognition for a tenants' association (RTA)
- learn about service charges and the right to challenge those charges
- insist on being consulted about major works and any long term agreements
- find out about the insurance of the property
- understand about taking over the management of the block (the right to manage or RTM). This normally happens in case you are not happy with how the landlord/lady is managing the building maintenance.
If you need to exercise any of your rights, it will help to have some clear information of certain obligations and areas where you feel the need to challenge. Once you have acquired basic know how, seek out the services of a qualified lawyer. He will support you through the process.
The soothing freedom of a little prior knowledge will translate to a worry free lease extension - and your flat in a good situation to sell in a competitive market.