Buying or selling a home is one of the biggest financial decisions you can make, and it's natural to have questions. At stevensdrake solicitors, our conveyancing team is here to make the process as smooth as possible. Below, we answer some of the most frequently asked questions.
What is the difference between leasehold and freehold?
If you own a freehold property, you own the building and the land it stands on. Leasehold means you own the property for a set period of time, but not the land. Leaseholders often pay service charges and ground rent, and may need permission for alterations.
What is the difference between rent charges and service charges?
Rent charges are payments made by freehold property owners to a third party, often historic and small in amount. They are different from service charges, which apply to leasehold properties and cover the cost of maintaining shared areas and services, such as communal gardens or hallways.
What is ground rent?
Ground rent is a payment made by a leaseholder to the freeholder under the terms of a lease. It's usually a small annual fee. The government has introduced reforms to restrict ground rents on new leases to zero, but older leases may still include them.
What is the source of funds and source of wealth information?
We are required by law to understand where your money is coming from when buying a property. 'Source of funds' refers to the specific money used for the purchase (e.g. savings, sale of another property). 'Source of wealth' refers to how you came to have that money in the first place (e.g. employment, inheritance). You’ll need to provide documents like bank statements and evidence of savings or sales.
What ID do I need to provide?
To comply with anti-money laundering regulations, we need to verify your identity. This typically includes a photo ID such as a passport or driving licence and a recent utility bill or bank statement as proof of address.
What is the difference between exchange and completion?
Exchange is when the buyer and seller sign contracts and commit to the sale. Completion is when the money is transferred and the keys are handed over. After the exchange, the transaction is legally binding.
Can I exchange and complete on the same day?
Yes, it is possible to exchange and complete on the same day, but it requires all parties in the chain to be ready. It's more common to have a few days or weeks between exchange and completion to allow for arrangements like moving.
How long will it take to sell my house?
The average time to sell a house is around 8 to 12 weeks, but this can vary. Factors include whether you're in a chain, how quickly documents are provided, and how efficient all parties are.
What is a property chain?
A property chain is a line of linked property transactions. For example, you may be selling your home to someone who is also selling theirs. If one transaction is delayed, it can affect the whole chain.
How can I avoid being stuck in a long chain?
You can minimise delays by being organised, responding quickly to queries, and choosing an experienced conveyancer. If possible, you could consider selling to a chain-free buyer or moving into temporary accommodation to break the chain.
What is the Building Safety Act?
The Building Safety Act 2022 is a law aimed at improving building safety standards, especially in high-rise buildings. It introduces stricter rules for developers and owners, including the management of safety risks and the creation of a building safety regulator. If you're buying a flat in a tall building, this act may affect your responsibilities and costs.
If you have any more questions or need help with buying or selling your home, get in touch with the conveyancing team at stevensdrake solicitors. We're here to help.
Sarah joined stevensdrake in June 2022 as head of residential property having previously worked for over 17 years at a leading London law firm within their multi-award winning property department.
Having worked for over 20 years in the industry, Sarah has gained a wealth of experience in her field and has dealt with an extensive variety of complex property related legal matters.
Sarah advises a wide range of clients, including first time buyers, property investors, high net worth and ultra high net worth individuals, developers, companies and banks, on all aspects of residential property related matters including sales and purchases (both leasehold and freehold), transfers of equity, re-mortgages, deeds of variation, lease extensions, buy to let’s, shared ownership, Help to Buy, new-build developments and exchanges of land as well as providing general legal advice on property matters.
Sarah has built up a large network of clients and referrers alike and is regularly recommended by her clients to others with client satisfaction being a top priority.
Sarah is known for her friendly, approachable nature as well as her diligent practices, forward thinking, pro-active approach and pragmatic problem solving.
Sarah strives to provide a first class service to all clients and her goal is to make the whole process as stress free as possible.
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