The excitement of putting your leasehold property on the market might be overshadowed by an ongoing issue or dispute.
You might be concerned about how buyers will react to this or if it will delay or derail your sale entirely.
Whenever there is an ongoing issue with your property, you need to know how to communicate this with potential buyers and whether you can still sell the property.
What do I need to disclose when selling?
Any prospective buyer will expect transparency and full disclosure of important details when selling your leasehold property.
This can include:
Your potential buyer is responsible for carrying out their own due diligence checks, but you also have a duty not to withhold information that could affect their decision.
Failing to disclose any relevant issues or providing incomplete or misleading answers could put you at risk of claims for misrepresentation.
Do disputes need to be resolved before selling?
Resolving a dispute before putting the property on the market is always the preferred solution.
However, this is sometimes easier said than done and there are some delays that are outside of your control.
For example, lease extension applications can take time and landlords may not always be quick to respond.
This is where a legal adviser’s support becomes essential. They will help you document the necessary steps taken to resolve the issue and allow the buyer to proceed with the process after completion.
You might also look to negotiate a financial arrangement, such as retaining a portion of the purchase price, to help manage the potential risks your issue or dispute could bring.
What about service charges or withholding payments?
Disputes over service charges or a lack of maintenance are amongst the most common issues we see leaseholders face.
While it may be tempting to withhold payments as leverage, doing so can put you in breach of your lease and raise concerns for buyers.
Most buyers will also insist that service charge and ground rent accounts are fully up to date before completion.
Additionally, any outstanding arrears can undermine buyer confidence and delay mortgage approvals.
There are limited circumstances where withholding payment can be justified and this should only be done with clear legal advice and if a sale is planned.
Why do I need a landlord’s consent for alterations?
Many leases require the landlord’s consent for alterations or for selling the property.
While landlords cannot usually withhold consent without reason, there is still a risk of delay.
Also, if alterations were carried out without consent, buyers would expect this to be addressed and presented with a solution.
This may include retrospective consent, indemnity insurance, removing the work or adjusting the sale price to reflect the potential risks.
How can we help with your housing issues or disputes?
Selling a leasehold property with complications does require careful handling and we are here to support your disclosure requirements.
We will liaise with landlords and managing agents and help you manage any potential leasehold disputes.
Our expert team can help you protect yourself from future claims and put you in the best position to achieve a successful sale.
For further support, get in touch with our residential property team.
