The leasehold property market in England and Wales is currently undergoing changes, with new legislation aimed at giving more rights to leaseholders. Despite the negative reputation associated with leasehold ownership, the reality is that many people have no choice but to consider leasehold properties due to their affordability and availability.
The Leasehold and Freehold Reform Act 2024, implemented by the Labour government, includes changes such as a ban on the sale of new leasehold houses and plans to regulate ground rents and extend leaseholders’ rights.
Before purchasing a leasehold property, it is essential to consider factors such as the length of the lease, potential costs like ground rent and service charges, and restrictions outlined in the lease agreement. Buyers should also check the reputation of the freeholder and management company, as well as look out for any upcoming maintenance work that may require additional payments.
In addition, buyers should be aware of the option to join a Right to Manage (RTM) company or buy a share of the freehold, which could provide more control over the management of the building. However, these options may come with administrative burdens and require the agreement of a majority of leaseholders.
Overall, due diligence is crucial when considering purchasing a leasehold property, and seeking advice from a conveyancing solicitor can help navigate the complexities of leasehold ownership and potential legal changes in the sector.
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