So you’ve finally planned to sell a freehold property Right. Or maybe you’re not in a position to manage a freehold, that’s why you’re willing to get rid of it as soon as possible. Whatever the reasons may be, the truth of the matter is, you need to sell it right away. Well honestly, in freehold property, there comes a time when you need to sell it. Since you’ve made up your mind to sell your freehold property, here’re a few things to take into consideration. So let’s dive in;
Freehold vs Leasehold
In case you own the freehold of a property, it’s not just the property but the land as well that you own. Since you’ve got the ownership of both, you’re actually responsible for both; the property and land. But when it comes to the leasehold, neither you own the property nor the land. In fact, you just have the right to live in the property for the number of years mentioned in the lease agreement.
Normally, the lease agreement is prepared with the freeholder of the property and land. Once the lease agreement ends, the property will revert to them unless you there’s any further agreement form extending it.
What affects the freehold value?
Well, there’re many factors that can have an impact on the value of a freehold property. Besides the original value of that property, there’re other factors like the annual ground rent – yearly rent paid from the leaseholder to freeholder, the length of the lease term – the number of years left on the lease, and the location. To get an estimation based on these factors, try using an online freehold calculator to get the real of your freehold.
What If you have tenants living in?
If you have tenants, you just can’t take your property for sale even if it’s a freehold property in UAE as there are some laws for the protection of tenants. In case you are planning to sell your freehold property, it’s essential first to provide the tenants with notice within the correct timeframes.
In case you’ve got two flats, for example, you must offer tenants the right of first refusal until and unless you have lived in for at least a year. Make sure that you collect all outstanding payments from tenants before taking the property to market so that you’re not left out of pocket.
Invest in legal advice
When it comes to selling any property, you’ve got to come across legal implications. So just make sure you get some legal advice from an expert. For sure, there can be some unexpected obstacles in selling freehold properties in particular like providing specific paperwork in specific time frames.
From your side, you need to play safe. So just ensure that you’re doing everything you need to. Try investing in a solicitor who specializes in selling freehold properties and has enough knowledge about Landlord & Tenant laws.
Do you want to learn more about selling off plan property and the factors that can impact? Just check out the article now
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