Which property types take the longest time to buy?
From complex flats and shared ownership homes to new builds and unusual titles, Lyons Bowe reveals which properties can create the biggest conveyancing workload
The latest insight from Lyons Bowe has revealed which types of property are most likely to require the largest and most complex conveyancing workload, potentially adding more stages to the journey between having an offer accepted and getting the keys.
At the top of the list are leasehold flats in higher-risk or complex buildings and shared ownership properties, both of which can involve a significant amount of additional legal work and information gathering. At the other end of the scale, a standard freehold house with a straightforward registered title will generally require fewer additional layers of investigation.
The ranking considers the typical legal, title, leasehold, management and third-party issues that can arise when buying different types of property. Every transaction is different, and a straightforward-looking purchase can still encounter unexpected issues, but some property types are more likely than others to involve additional documentation, enquiries and parties.
1. Leasehold flat in a higher-risk or complex building
– Potential workload: Very high
For buyers purchasing a leasehold flat in a higher-risk or particularly complex building, the conveyancing process can require many different areas of investigation.
As well as reviewing the lease, a conveyancer may need to obtain and consider a management pack, service charge information and building insurance details. Depending on the building, there may also be fire and building-safety enquiries to address, alongside any additional requirements imposed by the buyer’s mortgage lender. In fact, due to the complexities of navigating the Buildings Safety Act, many conveyancers will not take on work in these areas.
With multiple documents and potentially several parties involved, these purchases can require a particularly substantial conveyancing workload, and require the expertise of particularly experienced conveyancers.
2. Shared ownership property
Potential workload: Very high
Shared ownership adds another layer of complexity because the buyer is not simply purchasing a standard freehold or leasehold interest.
The transaction can involve the usual leasehold work, as well as dealing with the housing association and reviewing provisions relating to staircasing, future resale and nomination requirements. Rent and service charges must also be considered, alongside the requirements of the buyer’s mortgage lender.
In short, there can be more moving parts to bring together before the purchase can proceed.
3. Complex leasehold flat
Potential workload: High
Leasehold flats can require a significant amount of additional legal work compared with a straightforward freehold purchase.
A conveyancer may need to carry out a detailed review of the lease and obtain information from the freeholder or managing agent. Service charges, planned major works, ground rent, covenants and management packs all need to be investigated.
The involvement of third parties can also mean that progress depends on information being supplied from outside the immediate buyer and seller transaction.
4. New-build property
Potential workload: High
A brand-new home may look like the simplest possible purchase, but new-build conveyancing can come with its own set of complexities.
There can be extensive developer documentation to review, alongside planning agreements, estate arrangements and warranties. Conveyancers may also need to consider arrangements around the adoption of roads and sewers, while new developments can involve more complex title structures.
For buyers, the key point is that new does not always mean simple.
5. Leasehold house
Potential workload: High
Buying a house rather than a flat does not necessarily mean avoiding the complexities associated with leasehold ownership.
A leasehold house can involve ground rent, covenants and estate management arrangements, as well as potentially unusual title provisions. The conveyancing work may therefore extend beyond the issues a buyer would expect when purchasing a more conventional freehold home.
6. Freehold property with estate charges, sometimes referred to as a fleecehold
Potential workload: Medium to high
A property may be freehold, but that does not always mean the owner has no ongoing obligations to a third party.
Some freehold homes are subject to estate charges and management arrangements, which can require the conveyancer to investigate the role of a management company, any ongoing charges, covenants and restrictions affecting the property.
Buyers can therefore face some of the additional information and administrative requirements more commonly associated with managed developments.
7. Listed or significantly altered property
Potential workload: Medium to high
Period homes can be full of character, but that history can also require additional legal checks.
For a listed property, or one that has been significantly altered over time, a conveyancer may need to investigate planning permissions, listed-building consents and building regulations. There may also be a need to establish what evidence exists in relation to historic alterations.
The more complicated a property’s history, the more there may be to investigate.
8. Unregistered, defective or unusual title property
Potential workload: Medium to very high
A property’s title is the legal foundation of the purchase, so where it is unregistered, defective or unusual, additional investigation may be required.
Depending on the circumstances, this can involve examining ownership rights, covenants, boundaries, easements and other legal issues affecting the property.
The workload can vary considerably from one case to another, which is why these properties can range from requiring a medium level of additional work to a very high level.
9. Standard freehold terrace, semi-detached or detached property
Potential workload: Low
At the more straightforward end of the scale is a standard freehold house with a clear, registered title.
Where there is no landlord, lease, managing agent or unusual ownership arrangement to investigate, there are generally fewer additional layers of information involved in the conveyancing process.
That does not mean the transaction is guaranteed to be problem-free, but a conventional freehold property will often involve a less complex starting point than the other property types on the list.
Paul Lyons, Managing Director at Lyons Bowe Solicitors, commented:
“One of the biggest surprises for buyers is that the complexity of a property purchase isn’t always obvious from the outside. What might initially look like a relatively straightforward purchase can have all sorts of complex legal arrangements hiding behind the scenes.
The important thing is that a longer conveyancing process does not automatically mean that something has gone wrong. Sometimes there is simply more to investigate, more paperwork to review and more parties involved in the transaction.
Our advice is to understand the type of property you’re buying as early as possible and to go into the process with realistic expectations. The more complex the ownership, title or management arrangements, the more there may be to work through before you can finally get the keys.
Buying a home isn’t just about choosing the property you want to live in. You’re also buying into its legal history, ownership structure and obligations. Sometimes, the most complicated part of a house isn’t the one you can see.”
You May Also Enjoy
8,500 tenanted homes currently on the market
Which property types take the longest time to buy?
Building Site Accidents and Compensation: A Guide for Injured Workers
First-Time Buyers: Why 4–5 Houses is the Sweet Spot
Two in five mortgage holders switched banks for a better mortgage deal
