A NEW property sales process will reduce leasehold transaction times by five to 10 days and save UK consumers a combined total of over a million days each year.
The new process, based on a standardised questionnaire for the industry, has been created by the Association of Residential Managing Agents (ARMA) and all the major trade bodies, including The Law Society and the Royal Institution of Chartered Surveyors (RICS). Facilitated by Move with Us, it will be available to all parties involved in selling a leasehold property.
Buyers and sellers of leasehold properties have experienced added complications and expensive delays because of differing information requirements from conveyancers. This means the landlord or managing agent has to deal with a different set of enquiries every time a leasehold property is sold.
By creating an approved set of enquiries for leasehold properties, landlords and managing agents can collate the information, confident that both the buyer’s and seller’s conveyancers will accept it. This will save an estimated five to 10 working days on average. Consumers will also save money as additional requests for information will only be needed where an issue requires further investigation.
Michelle Banks, chief executive of ARMA, welcomed the initiative saying: “This is a fine example of collaboration across the leasehold property sector. As well as saving time, this will bring greater clarity to the process of buying a leasehold property and help to ensure that prospective purchasers understand the responsibilities that come with becoming a leaseholder.”
Beth de Montjoie Rudolf, legal services consultant at Move with Us, says: “Up until now there has been uncertainty in the process. By agreeing what information will be provided, legal advisers know that they will receive all the information required and the landlords and managing agents can put systems in place to supply that information quickly and efficiently. The new form is a triumph of common sense and a wonderful example of what can be achieved when the whole industry works together.
“With almost five million leasehold titles registered in England & Wales, this new form will have wide reaching benefits. It is likely there will be one leasehold property somewhere in every chain of transactions.”