Freehold v Leasehold: Buying A Property in Loughborough

If you own a freehold property, this means that you own the property together with the land that the property sits on.

You own the freehold property outright and for a perpetual period of time. You are not accountable to anyone as you are solely responsible for the freehold property. On the other hand, if you own a leasehold property this means that you own the property but not the land that the property sits on. This belongs to the Freeholder (your Landlord). Unlike a Freehold, your ownership of the property is for a set period of time.

This is determined by a Lease granted by your Landlord. The term of the Lease can vary from 99 to 999 years. If the remaining term falls below 99 years, you can apply to the Landlord for the lease to be extended.  The Lease will stipulate obligations that both yourself and Landlord must adhere to during the ownership of your leasehold property such as maintenance and repair obligations and the payment of certain costs such as service charge and ground rent.

The benefits of buying a freehold property

If you own a freehold property you own the property outright which means that you are not accountable to another person such as a Landlord and you are not liable to pay any costs such as service charge or ground rent. You own the property indefinitely or up until you decide to sell it. Realistically, you are in a good position as you are free to do as you please, within reason. Like all property, you are bound by any covenants contained in the deeds as are your successors in title as these run with the property. However, this is a small price to pay for having complete ownership of the property.

Why Do I need a conveyancer?

When it comes to buying and selling property it is important to shop around to obtain the best conveyancing quotes out there. You will find that some conveying quotes are cheaper than others, however, it does not necessarily mean that they are the best.

You should always partner with top Loughborough conveyancing solicitors to get the best quotes.

How do I get conveyancing quotes?

The best way to get conveyancing quotes is to approach firms directly. It pays to do some research first. Use google to find conveyancers who offer the service you require and have a look at their online reviews.

Pick a few that you like the look of and call them to obtain conveyancing quotes.  Make sure you give as much information as you can so your quote can be detailed as possible. You can then compare prices. Don’t be lured in by the promise of cheap services and remember that conveyancing quotes given at this stage are not a true reflection of final costs.

Why are some conveyancing quotes cheaper than others?

Firms have the flexibility to set their own fees which means that no two quotes will be the same. This is why it is important that when you receive conveyancing quotes, you understand exactly what you have been quoted for.

If you receive conveyancing quotes that are on the cheaper side, they may be cheap for a reason. Initial conveyancing quotes are not necessarily a true reflection of final costs as they do not account for any additional work required. It is difficult to interpret at the instruction stage what the transaction will involve therefore only the very basic costs are quoted.

This means that you could end up paying more than you were initially quoted once all the additional costs are accounted for which could amount to hundreds! Therefore, cheap does not mean the best. It could end up being very pricey.

How to Sell Property using an Estate Agent

It may seem obvious but in order to sell property, you need to find a buyer first. To attract potential buyers you can market the property yourself, but most people will instruct an Estate Agent to do this on their behalf. Your Estate Agent will visit your property to conduct a valuation so your property can be marketed at a reasonable price.

They will then deal with potential buyers, arrange viewings, and help achieve your asking price. They will also be involved throughout the conveyancing process, so the role of Estate Agent is important when you come to sell property.

What is the conveyancing process to sell property?

In order to legally sell property to your buyer you must instruct a conveyancer. Your conveyancer will ensure that the legal process is followed, and ownership is correctly transferred to the new buyer.

The first step to legally sell property is to complete the necessary paperwork. This will be sent to your buyer’s conveyancer with a draft contract and any deeds to the property. Your buyer’s conveyancer will review these documents and raise enquiries.

Your conveyancer will send you any enquiries that you are able to answer and it will go back and forth until your buyer’s conveyancer is satisfied with your replies. Once a completion date has been agreed between yourself and your buyer you will then proceed to exchange contracts. At this stage the transaction becomes legally binding – you are bound to sell property and your buyer is bound to buy the property.

On completion, you will hand the keys over to the buyer once we are in receipt of the balance to complete and the sale proceeds will be transferred to you.

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