How we helped
- Advised on the purchase of a leasehold property in London
- Reviewed the proposed grant of a new lease directly from the freeholder
- Considered the building’s mixed-use and extended configuration
- Challenged exceptionally high service charges
- Considered the client’s proposed internal works
- Advised on amending the lease or obtaining a licence for alterations
- Worked to address these issues as part of the purchase process
The challenge
Our Property Conveyancing team acted for a client purchasing a leasehold property in London within a building that has a complex history of development.
The building includes commercial premises on the ground floor, with the upper floors having been extended to create additional flats. The property being purchased was being acquired directly from the building’s freeholder, with the transaction involving the grant of a new lease.
The client also had two important concerns. The service charges were exceptionally high compared with the level of services being provided, and the client planned to carry out extensive internal works to the property after completion.
Our approach
We took a close look at the proposed lease and the arrangements affecting the property as part of the purchase process.
Given the level of service charges, we challenged the charges and considered the services being provided in return. This was an important part of helping the client understand the ongoing costs associated with the property before committing to the purchase.
We also considered the client’s plans for extensive internal works. We looked at whether the lease needed to be amended to accommodate those plans or whether a licence for alterations could be obtained as part of the transaction.
By addressing these issues during the purchase process, rather than leaving them until after completion, we were able to focus on the client’s wider objectives and the practical use of the property.
The outcome
Our team worked to ensure that the proposed lease reflected the client’s requirements and that the key issues around service charges and alterations were addressed as part of the purchase.
We managed to get the service charges significantly reduced to reflect a more appropriate level for the services being provided and we also managed to ensure they were able to carry out the works they wanted to undertake post completion.
The transaction demonstrates the value of taking a wider view of leasehold conveyancing. For buyers, the legal terms of a lease can have a significant impact on both the ongoing cost of owning a property and what they are able to do with it.
Why specialist advice matters
Leasehold purchases can involve more than simply checking the title and completing the transaction. Service charges, lease restrictions and alteration requirements can all affect the value and future use of a property.
Our Property Conveyancing team takes the time to understand what clients want to do with their property and identifies issues that need to be addressed before they commit to the purchase.
