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Selling Leasehold Property
Can anyone advise me please. I have put my property, a flat, on the market, it is Leasehold. Someone told me I have to ask permission/notify the Landlord/Freeholder. Is that correct? It is a privately owned block and is not local authority and all of the flats are privately owned or rented. Also, I am going to be moving in with a friend when I sell, and plan to give my Son the proceeds to buy a flat/maisonette with. Will there be any ramifications to this? Am I going to get any grief from anywhere if I do this, is it likely to mean I incur paying any taxes or anything? He will buy his property outright and will be a first time buyer. He will be spending between 200,000 and 220,000. Any advice would be so appreciated. Also anyone recommend anywhere I can get Conveyancing done without being ripped off or taken for a ride? Someone reliable and efficient?
Answers
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To the best of my knowledge, you don't need to notify the freeholder that you're planning to sell the lease.
You're free to give your money to whomever you like, for them to do whatever they want with....
You're free to give your money to whomever you like, for them to do whatever they want with....
18:59 Sat 14th Jan 2012
To the best of my knowledge, you don't need to notify the freeholder that you're planning to sell the lease.
Try to find a licensed conveyancer, rather than a solicitor, to sell the property. (My own experience is that they're cheaper and more efficient).
You're free to give your money to whomever you like, for them to do whatever they want with. (There's no such thing as 'gift tax'). However if you needed to go into a home in the future, it's possible that the local authority might take the view that you'd deliberately sought to avoid contributing to care home fees. (There's no time limit but the likelihood of that happening would probably diminish over time):
http://webarchive.nat...CareHomes/DG_10031523
Also, if you were to die within 7 years of the transfer of funds, all or part of the amount you've given away could still be counted as part of your estate when assessing whether that estate was liable for inheritance tax:
http://www.hmrc.gov.u...ey-property/index.htm
Chris
Try to find a licensed conveyancer, rather than a solicitor, to sell the property. (My own experience is that they're cheaper and more efficient).
You're free to give your money to whomever you like, for them to do whatever they want with. (There's no such thing as 'gift tax'). However if you needed to go into a home in the future, it's possible that the local authority might take the view that you'd deliberately sought to avoid contributing to care home fees. (There's no time limit but the likelihood of that happening would probably diminish over time):
http://webarchive.nat...CareHomes/DG_10031523
Also, if you were to die within 7 years of the transfer of funds, all or part of the amount you've given away could still be counted as part of your estate when assessing whether that estate was liable for inheritance tax:
http://www.hmrc.gov.u...ey-property/index.htm
Chris
As regards consent from the freeholder/landlord, the lease needs to be checked as there can be provisions for obtaining the Landlord's consent.
The usual process would be that a set of leasehold enquiries would be requested by the buyer's solicitor from the seller's solicitor. This will cover things like any consent required and fees from it and other leasehold issues. It would be completed by the landlord/management company etc...
It is quite common for some kind of consent to be required, especially if sums are paid to the Landlord for anything like ground rent or service charge. This gives the landlord to refuse to give written consent unless all outstanding sums are paid up to completion.
The consent is usually required in the lease and as the lease forms the basis of the title to the property the Land Registry would not register the transaction which is a big problem!
Other issues which can affect consent are breaches of any requirements/restrictions, essentially things the landlord wants to make sure are sorted properly before any change of ownership.
It is common for the landlord to charge for replying to these enquiries and for any consent and other items required (eg a Deed of Covenant making a direct agreement between them and the new buyer). Notices are often required to give the landlord the details of the new owner any any mortgage though fees for anything post-completion are usually borne by the buyer.
I've seen some where there is a sale fee too, that you have to pay a percentage of the sale price/value or similar to the landlord on any sale! Not very common from what I've seen but they do exist.
Can you remember what was done when you purchased the property? Your legal advisor should be able to advise as to what is required.
The usual process would be that a set of leasehold enquiries would be requested by the buyer's solicitor from the seller's solicitor. This will cover things like any consent required and fees from it and other leasehold issues. It would be completed by the landlord/management company etc...
It is quite common for some kind of consent to be required, especially if sums are paid to the Landlord for anything like ground rent or service charge. This gives the landlord to refuse to give written consent unless all outstanding sums are paid up to completion.
The consent is usually required in the lease and as the lease forms the basis of the title to the property the Land Registry would not register the transaction which is a big problem!
Other issues which can affect consent are breaches of any requirements/restrictions, essentially things the landlord wants to make sure are sorted properly before any change of ownership.
It is common for the landlord to charge for replying to these enquiries and for any consent and other items required (eg a Deed of Covenant making a direct agreement between them and the new buyer). Notices are often required to give the landlord the details of the new owner any any mortgage though fees for anything post-completion are usually borne by the buyer.
I've seen some where there is a sale fee too, that you have to pay a percentage of the sale price/value or similar to the landlord on any sale! Not very common from what I've seen but they do exist.
Can you remember what was done when you purchased the property? Your legal advisor should be able to advise as to what is required.
Probably more likely for there to be requirements for consent then if a new property. It seems to be a popular way for landlords to make extra income by charging certain fees.
Does a management company look after the building (insurance, maintenance etc...) as they tend to charge higher fees for replies to enquiries, consent etc...
It all depends on what is in place in your lease and any supplemental documentation really.
Do you have a copy of your lease and title to have a look for anything required on trasnfer of ownership?
Does a management company look after the building (insurance, maintenance etc...) as they tend to charge higher fees for replies to enquiries, consent etc...
It all depends on what is in place in your lease and any supplemental documentation really.
Do you have a copy of your lease and title to have a look for anything required on trasnfer of ownership?
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