1. As the leaseholder you may be required by the lease to pay ground rent, service charges, management fees and buildings insurance to the landlord or their appointed managing agent, on top of any mortgage repayments and utility bills. Such charges tend to vary from year to year. 

2. In some cases there may also be a management company involved in running the site as a whole. Where there is a management company it may also have its own managing agents and you may need to make payments for different charges to different people.

3. Most mortgage lenders won’t lend on short leases, which limits who the property can be sold to. If you find that the property you are buying has a short lease you should request that the seller obtains an extension of the length of the lease at their expense and before you buy the property. The cost of doing so can be thousands of pounds.

4. In some instances it is possible to buy a share of the freehold of the property. As you and your fellow-freeholders own the freehold you are in effect your own landlord and can exercise greater control over the running of the building. While this may mean more work for you, it can mean lower charges for things like the repair and insurance of the building and you may decide to suspend the payment of any ground rent on an informal basis.

5. Always check the description and plans of the property within the lease carefully. If there are any discrepancies you must alert your solicitor as soon as possible. Any discrepancies can be expensive and time-consuming to correct. Therefore it is vital to have any amendments made by the seller at their expense and before you buy it. 

For further advice on leasehold properties please contact a member of our property team on Northwich -01606 74301, Winsford 01606 592159 or Wilmslow on 01625 538816.