by Saqib Khan | Aug 19, 2025 | Conveyancing, General, Landlord and Tenant Law
Leasehold residential properties are a common type of housing in many countries around the world. They are particularly popular in urban areas, where land is scarce and expensive. In this blog, we will discuss leases with regards to leasehold residential properties, including what they are, how they work, and some of the key issues that arise in relation to them.
What is a Leasehold Residential Property?
A leasehold residential property is a type of property where the owner of the property only owns it for a fixed period of time. This period is determined by the lease, which is a legal contract between the owner (known as the landlord) and the occupier (known as the tenant). The lease will set out the terms and conditions under which the tenant can occupy the property, including the rent that they will pay, the length of the lease, and any other obligations that they may have.
How do Leasehold Residential Properties Work?
Leasehold residential properties work by giving the tenant the right to occupy the property for the length of the lease. During this time, they will be responsible for paying rent to the landlord and complying with any other obligations set out in the lease. These may include things like keeping the property in good condition, not making any alterations without the landlord’s permission, and not using the property for any illegal purposes.
At the end of the lease, the property will typically revert back to the landlord, unless the tenant is able to renew the lease or purchase the freehold. This can create uncertainty for tenants, particularly those who have invested a lot of time and money into improving the property.
Key Issues with Leasehold Residential Properties
One of the main issues with leasehold residential properties is the cost of ground rent and service charges. Ground rent is an annual fee that the tenant pays to the landlord for the use of the land on which the property is built. Service charges are fees that the tenant pays to cover the cost of maintaining the common areas of the property, such as the communal gardens or lifts.
In some cases, these fees can be very high, particularly if the landlord has sold the freehold to a third-party company. This can make it difficult for tenants to afford the cost of living in the property, and can also make it harder for them to sell the property when they want to move on.
Another issue with leasehold residential properties is the difficulty of making alterations to the property. Many leases will require the landlord’s permission before any alterations can be made, and this can be a slow and bureaucratic process. This can make it hard for tenants to make the property their own, and can also reduce the value of the property if potential buyers are put off by the restrictions.
Conclusion
Leasehold residential properties are a common type of housing in many countries around the world. They offer tenants the right to occupy a property for a fixed period of time, but can create uncertainty and financial challenges due to the cost of ground rent and service charges. Tenants may also face restrictions on making alterations to the property, which can reduce its value and make it harder to sell. If you are considering buying or renting a leasehold residential property, it is important to carefully review the terms of the lease and seek legal advice if necessary. Please call our conveyancing department on 0161 850 9911 to discuss any lease concerns you may have.
by Saqib Khan | Jul 31, 2025 | Business, Conveyancing, Landlord and Tenant Law
Buying a house is one of the most significant financial commitments you will ever make. Most people focus on the two main figures: the deposit and the mortgage. However, these are just the beginning. The truth is, there are a number of essential “hidden” costs that can quickly add up, and failing to budget for them can derail your plans.
At KhanMather Solicitors, we believe in being transparent with our clients from the start. Here’s a guide to the key costs you need to budget for beyond the price of the property itself.
- Conveyancing Fees
This is the legal work required to transfer the property from the seller to you. It’s a non-negotiable expense. Your conveyancing fees will be broken down into two parts:
- Legal Fees: This is the cost for your solicitor’s time and expertise, covering everything from drawing up contracts to dealing with the Land Registry. The cost can vary depending on the complexity of the sale (for example, a leasehold property is more involved than a freehold one).
- Disbursements: These are the third-party costs that your solicitor pays on your behalf. They include all the essential conveyancing searches we discussed in a previous blog post, as well as the fees for the Land Registry to officially register you as the new owner.
- Stamp Duty Land Tax (SDLT)
This is a government tax that you must pay when you buy a property or land in England and Northern Ireland over a certain price threshold. The amount you pay depends on the property’s value and whether you are a first-time buyer, a home mover, or buying a second property.
It’s a “slice” tax, which means different rates apply to different portions of the price. The total can be a significant sum, so it’s vital to calculate it accurately and budget for it from the outset. Your solicitor will handle the process of paying this tax for you.
- Mortgage-Related Costs
While you might have secured a mortgage offer, there can be a number of fees associated with the loan itself:
- Mortgage Arrangement/Product Fee: Many lenders charge a fee to set up the mortgage, particularly for deals with lower interest rates. This can often be added to your mortgage loan, but remember you will pay interest on it for the life of the loan.
- Valuation Fee: Your lender will conduct a valuation to ensure the property is worth the price you’re paying. This is for their benefit, not yours, and may come with a fee. It is often a quick assessment and is not a detailed survey.
- Mortgage Broker Fees: If you use a mortgage broker to find the best deal for you, they may charge a fee for their service.
- Survey Costs
While your lender will conduct a valuation, it’s highly recommended that you instruct your own independent survey. This is your chance to get a detailed report on the property’s condition, which could save you thousands in the long run. There are different levels of survey, with prices increasing with the detail provided:
- HomeBuyer Report (Level 2): Suitable for most modern, conventional properties in a reasonable condition. It identifies potential problems like damp or subsidence.
- Building Survey (Level 3): The most comprehensive survey, recommended for older properties, buildings in poor condition, or those with unusual construction. It gives a detailed account of the property and offers advice on repairs.
If a survey reveals significant issues, you may be able to use the findings to renegotiate the purchase price with the seller.
- Moving Costs
The cost of physically moving your belongings can also add up. This includes:
- Removals Company: The price will depend on the volume of your belongings and the distance of the move.
- Insurance: You might want to take out insurance to protect your items during the move.
- Storage: If there’s a gap between moving out and moving in, you might need to pay for temporary storage.
The Value of Preparation
The key to a smooth and stress-free house purchase is to be fully prepared and aware of all the potential costs. At KhanMather Solicitors, we provide a clear and transparent breakdown of all legal fees and disbursements from the start. We work with you and your mortgage broker to ensure you have a complete picture of your budget, leaving no room for nasty surprises.
For a fixed-fee conveyancing quote and expert advice on your property purchase, contact Hannah on 0161 850 9911 today.
by Saqib Khan | Jul 8, 2025 | Conveyancing, General, Landlord and Tenant Law
Leasehold residential properties are a common type of housing in many countries around the world. They are particularly popular in urban areas, where land is scarce and expensive. In this blog, we will discuss leases with regards to leasehold residential properties, including what they are, how they work, and some of the key issues that arise in relation to them.
What is a Leasehold Residential Property?
A leasehold residential property is a type of property where the owner of the property only owns it for a fixed period of time. This period is determined by the lease, which is a legal contract between the owner (known as the landlord) and the occupier (known as the tenant). The lease will set out the terms and conditions under which the tenant can occupy the property, including the rent that they will pay, the length of the lease, and any other obligations that they may have.
How do Leasehold Residential Properties Work?
Leasehold residential properties work by giving the tenant the right to occupy the property for the length of the lease. During this time, they will be responsible for paying rent to the landlord and complying with any other obligations set out in the lease. These may include things like keeping the property in good condition, not making any alterations without the landlord’s permission, and not using the property for any illegal purposes.
At the end of the lease, the property will typically revert back to the landlord, unless the tenant is able to renew the lease or purchase the freehold. This can create uncertainty for tenants, particularly those who have invested a lot of time and money into improving the property.
Key Issues with Leasehold Residential Properties
One of the main issues with leasehold residential properties is the cost of ground rent and service charges. Ground rent is an annual fee that the tenant pays to the landlord for the use of the land on which the property is built. Service charges are fees that the tenant pays to cover the cost of maintaining the common areas of the property, such as the communal gardens or lifts.
In some cases, these fees can be very high, particularly if the landlord has sold the freehold to a third-party company. This can make it difficult for tenants to afford the cost of living in the property, and can also make it harder for them to sell the property when they want to move on.
Another issue with leasehold residential properties is the difficulty of making alterations to the property. Many leases will require the landlord’s permission before any alterations can be made, and this can be a slow and bureaucratic process. This can make it hard for tenants to make the property their own, and can also reduce the value of the property if potential buyers are put off by the restrictions.
Conclusion
Leasehold residential properties are a common type of housing in many countries around the world. They offer tenants the right to occupy a property for a fixed period of time, but can create uncertainty and financial challenges due to the cost of ground rent and service charges. Tenants may also face restrictions on making alterations to the property, which can reduce its value and make it harder to sell. If you are considering buying or renting a leasehold residential property, it is important to carefully review the terms of the lease and seek legal advice if necessary. Please call our conveyancing department on 0161 850 91 and speak to Hannah to discuss any lease concerns you may have.
by Saqib Khan | Jun 12, 2025 | Conveyancing, General, Landlord and Tenant Law
Recent headlines reveal a significant trend in the UK rental market: nearly half of landlords are reportedly planning to increase rents ahead of the impending rental reforms. This news, while perhaps not entirely surprising, highlights the complex landscape facing both landlords and tenants as significant legislative changes approach.
At KhanMather, we understand that these developments can create uncertainty and concern. As a law firm committed to providing clear, practical advice, we aim to shed light on what these planned rent increases mean and how both parties can navigate the evolving legal framework.
The Driving Force: Impending Rental Reforms
The anticipated increase in rents is largely a pre-emptive response to the Renters’ Rights Bill, which is set to bring about the most significant changes to the private rented sector in decades. Key reforms include:
- Abolition of Section 21 “no-fault” evictions: This is arguably the most impactful change, giving tenants greater security of tenure and empowering them to challenge poor practices without fear of arbitrary eviction.
- Move to periodic tenancies: All assured shorthold tenancies will become periodic, meaning tenants can stay indefinitely unless a landlord has a valid, specified ground for possession.
- Restrictions on rent increases: Landlords will generally be limited to one rent increase per year, which must be in line with the market rate. Tenants will have the right to challenge excessive increases at a First-tier Tribunal.
- New Landlord Ombudsman and Private Rented Sector Database: These measures aim to provide better dispute resolution and greater transparency in the sector.
- Application of the Decent Homes Standard: All rental properties will need to meet minimum quality standards.
Why Are Landlords Increasing Rents Now?
The news that 44% of Buy-to-Let landlords intend to raise rents, with an average increase of 6%, suggests several motivations:
- Anticipation of reduced flexibility: With the abolition of Section 21 and the shift to periodic tenancies, landlords may feel they will have less control over their properties and the ability to adjust rents to market rates as frequently. Increasing rents now allows them to secure a higher income before these new limitations come into full effect.
- Covering increased costs: Landlords face rising operational costs, including increased mortgage interest rates, maintenance expenses, and potential new compliance costs associated with the reforms. Higher rents can help offset these pressures.
- Addressing market rates: While the Bill limits future increases to once a year at market rate, some landlords may feel their current rents are below market value and are seizing the opportunity to align them before new regulations are fully implemented.
- Uncertainty and risk mitigation: The sheer scale of the reforms introduces an element of uncertainty. Some landlords may be increasing rents as a form of risk mitigation, ensuring a stronger financial position as they adapt to the new legal landscape.
Implications for Tenants
For tenants, the prospect of increased rents adds another layer to the ongoing cost of living crisis. While the reforms are designed to offer greater protections, the immediate impact for many could be higher housing costs. It is crucial for tenants to understand their rights, particularly regarding challenging excessive rent increases once the new legislation is in place.
Navigating the Changes: Our Advice
For Landlords:
- Stay informed: The Renters’ Rights Bill is progressing, and understanding its nuances is critical. Keep abreast of the latest updates and the precise implementation timelines.
- Review your portfolio: Assess your current rental agreements and consider how the new periodic tenancy structure will impact your properties.
- Understand possession grounds: Familiarise yourself with the expanded Section 8 grounds for possession. Effective tenant management and thorough record-keeping will become even more vital.
- Ensure compliance: Proactively work towards meeting the Decent Homes Standard and prepare for mandatory registration with the Private Rented Sector Database.
- Seek legal advice: If you are considering rent increases or are unsure about any aspect of the upcoming reforms, professional legal advice is invaluable to ensure compliance and avoid future disputes.
For Tenants:
- Understand your tenancy agreement: Know your current terms and conditions.
- Be aware of your rights: Once the Renters’ Rights Bill is enacted, you will have greater protection against arbitrary evictions and the ability to challenge unreasonable rent increases.
- Keep clear records: Document all communications with your landlord, particularly regarding rent increases or property maintenance issues.
- Know where to seek help: If you believe a rent increase is unfair or you are facing other issues, be aware of the resources available to you, including the new Landlord Ombudsman.
KhanMather: Your Partner in the Evolving Rental Landscape
The UK rental market is undergoing a significant transformation. At KhanMather, our experienced legal team is dedicated to helping both landlords and tenants understand and navigate these changes. Whether you require advice on compliance, tenancy agreements, dispute resolution, or simply want to ensure you are fully prepared for the new era of renting, we are here to offer clear, practical, and effective legal solutions.
Don’t let uncertainty lead to costly mistakes. Contact Hannah at KhanMather today on 0161 850 9911 for tailored legal guidance on the Renters’ Rights Bill and its impact on your property interests.
by Saqib Khan | May 27, 2025 | Conveyancing, General, Landlord and Tenant Law, People
Buying a home is a significant life event. If you are considering a leasehold property, it is crucial to fully understand the implications of this form of ownership. At KhanMather, our Residential Property Solicitors are dedicated to guiding you through the intricacies of freehold, leasehold, and commonhold titles, empowering you to make confident and informed decisions when purchasing your new home.
What Does ‘Leasehold’ Mean?
Leasehold remains a prevalent form of property title in England and Wales, particularly in regions such as the North West, where 27% of properties are leasehold, and London, with 36%.
Unlike freehold ownership, where you purchase both the building and the land it occupies, leasehold means you acquire ownership of the building for a fixed period, known as the lease term. During this term, you “lease” the property from the freeholder, who retains ownership of the underlying land.
The parties involved in a leasehold agreement typically include:
- Leaseholder (Tenant): You, as the owner of the property for the lease term.
- Freeholder (Landlord): The owner of the land on which the property is built.
- Management Company (Optional): A separate entity responsible for maintaining common areas.
Lease terms commonly range from 99, 125, 250, to 999 years. It is vital to monitor the remaining years on your lease, as the property’s value diminishes significantly as the term shortens. Mortgage lenders generally show reluctance to lend on properties with fewer than 80 years left on the lease. Upon expiry, ownership reverts to the freeholder unless the lease is formally extended.
Common Leasehold Terms
When considering a leasehold property, you will encounter specific financial and operational terms:
- Ground Rent: This is an annual payment made to the freeholder as a condition of the lease, distinct from payments for services. Historically nominal, some modern leases incorporate “escalating” ground rent clauses, leading to substantial increases over time. Recognising these concerns, legislation enacted in July 2022 prevents the creation of new leases with ground rents exceeding a peppercorn (a nominal sum). The future treatment of existing leases with escalating ground rent clauses remains a subject of ongoing legal discussion.
- Service Charge: In addition to ground rent, leaseholders often contribute to a service charge. These payments, made to the landlord or a designated management company, cover the maintenance of communal facilities such as shared entrances, staircases, gardens, courtyards, or car parks. When viewing a property that may incur a service charge, we recommend requesting a copy of the service charge budget to assess the level of charge and factor it into your overall budget.
Restrictions and Covenants
Leases commonly contain restrictions, known as covenants, which can be more stringent than those associated with freehold properties. It is imperative to review the lease thoroughly to understand what you can and cannot do with the property. Common restrictions include:
- Prohibitions on external or structural alterations, including extensions, without the consent of the freeholder or management company.
- Limitations on pets, potentially requiring consent from the freeholder or management company.
- Restrictions on sub-letting the property without the consent of the freeholder or management company.
Extending the Lease or Purchasing the Freehold
Recent legislative changes have removed the minimum ownership period previously required before a leaseholder could approach the freeholder to purchase the freehold or extend their lease.
Under the Leasehold Reform Act 1967, leaseholders of houses have the statutory right to acquire the freehold interest, a process known as enfranchisement. While some freeholders may agree to sell their interest voluntarily, others necessitate a formal claim and adherence to a statutory procedure. Seeking professional legal advice is crucial to navigate this process effectively and understand the potential costs involved.
What is Commonhold?
Introduced by the Commonhold and Leasehold Reform Act 2002, commonhold offers an alternative to the traditional long leasehold system. Although its initial reception by mortgage lenders and developers limited its widespread adoption, new proposals aim to revitalise commonhold, enhancing the structure and management of multi-occupancy developments or estates.
In theory, commonhold enables individual unit owners (e.g., houses or flats within a larger building) to own the freehold of their specific unit. A “commonhold association,” comprising the individual unit owners, would be formed and registered at Companies House. This association would own and manage the common parts of the building and estate, such as entrances, communal gardens, car parks, and the building’s structural elements.
Instead of a lease, a “commonhold community statement” would define the rights of individual unit owners to use common areas and establish their mutual responsibilities. A “commonhold assessment,” similar to a service charge, would be paid to contribute towards maintenance costs.
Further legislation is anticipated to make commonhold a more widely utilised structure, and we are closely monitoring these developments to provide our clients with the most up-to-date advice.
If you have any questions, p[lease telephone Hannah on 0161 850 9911.
by Saqib Khan | May 15, 2025 | Conveyancing, General, Landlord and Tenant Law, People
As we progress through 2025, the residential conveyancing landscape in England and Wales is undergoing significant transformations. Understanding these trends is crucial for buyers, sellers, and legal professionals alike. At Khan Mather Solicitors, we stay abreast of these developments to provide our clients with informed and effective legal guidance.
- Surge in Property Transactions Post-Stamp Duty Changes
The reduction of the Stamp Duty Land Tax (SDLT) threshold from £250,000 to £125,000 in April 2025 prompted a flurry of property transactions as buyers rushed to complete deals before the deadline. This surge has led to increased workloads for conveyancers and potential delays in processing times. Clients are advised to plan accordingly and engage legal services early in the buying or selling process.
- Emphasis on Energy Efficiency and Sustainability
There is a growing demand for energy-efficient homes, with buyers prioritising properties that offer sustainable features. Sellers are responding by investing in eco-friendly upgrades to attract environmentally conscious purchasers. Conveyancing practices now often include assessments of a property’s energy performance and sustainability credentials.
- Digital Transformation in Conveyancing Processes
The conveyancing sector is embracing digital tools to streamline operations. From electronic signatures to online property portals, technology is enhancing efficiency and transparency. However, challenges remain, such as ensuring cybersecurity and adapting to new digital platforms. Clients should be prepared for a more digital-centric conveyancing experience.
- Market Consolidation Among Conveyancing Firms
The conveyancing market is witnessing consolidation, with larger firms handling an increasing share of transactions. This trend may impact service delivery and client experience. At Khan Mather, we pride ourselves on maintaining personalized service while adapting to industry changes.
- Legislative Reforms Impacting Property Transactions
Recent legislative changes, including the Leasehold and Freehold Reform Act, are reshaping property ownership structures. These reforms aim to simplify transactions and provide greater clarity for buyers and sellers. Staying informed about such legal developments is essential for all parties involved in property transactions.
Navigating the evolving conveyancing landscape requires expertise and adaptability. Khan Mather Solicitors is committed to guiding our clients through these changes with professionalism and personalised support.
