Leasehold is ownership for a term of years — and the detail of that term really matters.
Buying a leasehold property means buying the right to occupy for a set number of years, rather than owning the building and the land it stands on outright. It's a common form of ownership for flats across Brighton and Hove, and it comes with its own set of considerations.
The lease itself is the most important document. It sets out the length of the term, the ground rent, the responsibilities for repairs and insurance, and the rules around subletting, alterations and pets. Reading it carefully before exchange is essential.
Lease length is the factor buyers most often underestimate. A lease with fewer than 80 years remaining can be harder to mortgage and more expensive to extend, and it may affect what a future buyer is willing to pay.
Service charges and ground rent deserve close attention too. Escalating ground rents and unpredictable service charge demands have caused real problems for leaseholders in recent years, so understanding the structure before you buy is vital.
If the lease is already short, you may be able to negotiate an extension as part of the purchase, or plan to extend shortly after. Having owned the property for two years gives most leaseholders the right to a statutory extension.
Taking specialist advice early — from your conveyancer and, where relevant, a surveyor — helps you understand exactly what you're buying and avoids unwelcome surprises after you've moved in.