1. Ensure that all ground rent and service charges are up-to-date: Prior to putting a leasehold property on the market, it is important to check that all ground rent and service charges are up-to-date and paid in full. If they are not, the buyer may be reluctant to proceed until they are settled.
2. Obtain a copy of the lease: It is essential to obtain a copy of the lease and to make sure that this is included with the property documents when selling. The lease will contain details about the length of the lease, any restrictions on the property, service charges and ground rent.
3. Disclose everything you know about the property: When selling a leasehold property, it is important to disclose everything you know about the property. This includes any information about the lease, maintenance charges and any potential future works that could affect the property.
4. Be prepared for a longer selling process: Selling a leasehold property can take longer than selling a freehold property as there are more documents and processes involved. It is important to be prepared for a longer selling process and to ensure that you are providing all of the necessary information to the buyer in a timely manner.
5. Ensure that you have contacted the Freeholder or Managing Agent to find out any costs that you may have to pay to get forms changed/updated and to allow the sale of the property to proceed.
6. Cladding on high rise buildings. Since the Grenfell Tower the issue of cladding on blocks of flats has caused enormous problems for many leaseholders and in light of the changes to fire regulations many leasehold flats have been unsellable. It is important to be aware of the rules and regulations on these types of properties and many will now require an EWS1 form to provide proof that they do not contain any cladding that does meet the required Building Regulation standards in 2023. Without that document it can be very difficult to sell your flat and mortgage lenders will also not lend on properties that they deem to be a potential fire risk.
7. Be aware of other flats on the market. In Chelmsford nearly 50% of the properties available for sale on the main property portals are flats. The city centre of Chelmsford has seen many new developments or conversions of old office blocks into residential accommodation. Make sure your property is priced competitively as potential buyers have a huge number of properties and developments to consider.
If you are thinking of buying or selling a leasehold property in Chelmsford please get in touch and talk with Trefor or Louise. It is important to be aware of the difference to a freehold purchase and the benefits and negatives to buying a flat in Chelmsford. Call us on 01245 830003.
