Question 1

Do you need a local leasehold solicitor?

Accepted Answer

You will need a leasehold solicitor to handle certain aspects of a sale, purchase, transfer, extension, enfranchisement, variation, and more. They do not need to be local, but they must be familiar with the complexities of leasehold property. Our solicitors work efficiently online and cover the whole of England and Wales, all correspondence is instant and digital, and you won't have to travel to their offices.

Question 2

How much does it cost to convert leasehold to freehold?

Accepted Answer

These fees vary depending on complexity: Leasehold grants ownership for a specific period, with restrictions. To own the property 'in perpetuity' (that means forever, or until you sell, transfer or die), you have to purchase the freehold. The cost of converting leasehold to freehold depends on the remaining lease term, the property's value, and the ground rent payable under the lease. On top of the purchase cost, the leaseholder will have to pay for the valuation fees and their own legal costs, as well as the freeholder's 'reasonable costs'.  If you live in a building containing multiple dwellings, you'll need to look at collective enfranchisement. This allows you to purchase the freehold along with the other leaseholders, so you will each own a share of freehold. Choose specialist leasehold solicitors with good client reviews to navigate the complexities of this process and negotiate the best possible terms for you.

Question 3

How long does leasehold conveyancing take?

Accepted Answer

The time frame for leasehold conveyancing can vary, but it usually takes anywhere from 6 to 12 weeks. Delays may occur if there are complications with the lease, difficulties in obtaining information from third parties, or lengthy negotiations between parties. Leasehold conveyancing typically takes longer than freehold conveyancing due to the additional legal requirements. The process includes obtaining information from the freeholder or management company regarding the lease, service charges, ground rent, and any ongoing disputes or maintenance issues.  To expedite the process, proactive communication with your leasehold solicitor is vital. Your SAM Conveyancing executive will oversee your whole case, helping facilitate communication and bridge the gap between you and the solicitor for a smoother completion. Cooperating with all parties, including the freeholder and management company, can help ensure a more efficient and timely transaction.

Question 4

Do leaseholders pay stamp duty?

Accepted Answer

Stamp Duty Land Tax (SDLT) is different in England and Wales. Whether leaseholders are required to pay SDLT depends on the terms of their lease and the purchase price of the property.   As a general rule, you'll be liable to pay stamp duty when you:    1Buy a leasehold property   If the purchase price of the leasehold property exceeds the SDLT threshold set by the government, which changes over time, SDLT will apply.    2Extend a lease    Leaseholders might also be subject to SDLT when they extend their lease, particularly if there is a substantial premium involved.    3Convert to freehold   When converting leasehold to freehold through enfranchisement or lease extension, SDLT may be applicable based on the terms of the agreement.   SDLT regulations are complex and subject to change, as we saw with the SDLT holiday of 2020/21. Seek advice from a knowledgeable leasehold solicitor or a qualified tax professional to understand the specific SDLT implications of your leasehold transaction.  Calculate your SDLT

Question 5

How do you choose the best leasehold solicitor?

Accepted Answer

Not all solicitors undertake leasehold work because of the additional complexities in reviewing the lease, management pack and handling the complex legal enquiries. When you speak to your conveyancing solicitor, before you instruct, you should ask how many leasehold transactions they handle in a month. If it is just 1 or 2, then it is better to work with a different solicitor who mainly handles leasehold work, like ours.

Question 6

Is leasehold going to be abolished?

Accepted Answer

Leasehold is unlikely to be abolished altogether, as it serves a specific purpose in certain property arrangements, such as apartments and flats, where there are necessary overlaps between dwellings that share roofs, stairwells, etc.   The government has begun implementing changes to provide fairer treatment for leaseholders. The Leasehold and Freehold Reform Act 2024 passed royal assent, making leasehold terms more transparent, affordable, and less burdensome for leaseholders. However, this has not yet taken effect, and it is unclear when the new government will implement these changes.

Question 7

Are leasehold houses difficult to sell?

Accepted Answer

Leasehold houses can be harder to sell compared to freehold properties, due to:   1Short lease terms    If the remaining lease term is below or nearing 80 years, you will have fewer potential buyers as many lenders will not grant a mortgage on a short lease.   2High ground rent and service charges    While ground rent is becoming rarer since reform, excessive ground rent or service charges will deter potential buyers and their lenders, as they can make the monthly outgoings on the property unaffordable.   3Limited control    Leasehold properties come with some restrictions which will put some buyers off, particularly those with intentions to renovate or develop. The saleability of a leasehold property also depends on various factors, such as location, condition, demand for housing in the area, and the terms of the lease. Sellers must provide clear and accurate information about the leasehold terms to potential buyers to avoid any surprises that might hinder the sale.

Question 8

How much does leasehold devalue a property?

Accepted Answer

Leasehold devalues a property versus an equivalent freehold by different amounts depending on the specific terms of the lease and market conditions. A shorter remaining lease can lead to a 10-20% reduction in value. This is because when the lease runs out the property reverts to the freeholder. You can avoid this by extending the lease, but the premium for this gets higher the less time is left on the clock.  High ground rent and demanding lease terms can negatively impact a property's value. In some cases, leasehold houses might be sold at a lower price compared to similar freehold properties in the same area, based on the ongoing expense of high-ground rent. On the other hand, with a very long lease, such as a 999-year lease, the impact on property value is typically minimal compared to freehold, and it might not significantly affect the property's desirability.  Potential buyers and sellers need to consider these carefully and seek professional advice from a qualified leasehold solicitor with experience.

Leasehold Solicitors

Leasehold conveyancing solicitors: Do you need a solicitor to buy a leasehold?

How much are conveyancing fees for a leasehold?

Leasehold extension solicitors

Collective enfranchisement solicitors

Free initial leasehold advice

Management disputes or service charge disputes

Vesting orders

Why you need a leasehold solicitor

Understanding the Lease Agreement

Protecting Your Interests

Searches and Due Diligence

Handling Legal Documents and Contracts

Dealing with the Freeholder or Management Company

Assistance with Financing and Mortgage Requirements

Compliance with Legal Regulations

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