Anyone that has bought a property will know that conveyancing can be confusing. Yet in a bid to make more information available upfront, trade and representative bodies have updated some important conveyancing forms.
The Law Society alongside a plethora of other trade bodies are spearheading reform, in a bid to ensure as much information as possible is known about properties upfront, before they are bought.
But what exactly has changed?
As of the 11th January 2022, the forms now ask:
- If there are any restrictions on pets
- If a fire safety or external wall fire assessment has been undertaken
- Who deals with the deed of covenant
- Contributions to the service charge
- Access to insurance
The idea behind these changes is to make key information about properties readily available to consumers. By teasing this information our of property owners early, potential property issues can be identified at an early stage. Not only does this full disclosure benefit consumers, but it also helps speed up property transactions.
What does this mean for leaseholders?
The recent changes are designed to benefit property managers, but also those who buy and sell leasehold properties.
In theory, the new form should not only increase the transparency around building safety, but it is also thought to speed up the selling process. For leaseholders that have a lower fire risk property, it should mean that selling up is far easier once it can be proven that their property does not pose a fire risk.
On the back of these changes for leaseholders are the further proposed reforms. It’s long been recognizes that leaseholders often feel trapped by rising ground rent costs. Often, conveyancers fail to adequately advise clients of the terms of the ground rent, leading to many leaseholders feeling stuck in their own home.
The proposed reform is designed to end onerous ground rents and drive up conveyancing standards to ensure that buyers are fully aware of the ground rent and management fees before they buy a leasehold property.
In conclusion
The bottom line is that there is a light at the end of the tunnel for leaseholders feeling as though they are trapped. On the back of disasters such as Grenfell, it’s important that leaseholders feel safe in their own homes. The new reforms brought in by The Law Society are pivotal in helping ensure potential leaseholders feel secure. By requiring property owners to disclose whether their properties pose a fire risk, leaseholders know that the property that they are buying is habitable.
By ensuring this information is disclosed fully upfront, it ensures full transparency for all parties – which can only be a good thing.
This combined with more potential reforms in 2022 is a great step forward in the world of conveyancing.
