It has been claimed that a new property sales process will reduce leasehold transactions by between five and 10 days and save UK consumers a combined total of over a million days each year.
The introduction of the new process, based on a standardised questionnaire for the industry, will be launched on 10 October 2013 by all the major trade bodies, including The Law Society and the Royal Institution of Chartered Surveyors (RICS) and will be available to all parties in the process.
It was initiated by Move with Us, the residential property group, in consultation with major industry bodies.
Buyers and sellers of leasehold properties have experienced added complications and expensive delays because of differing information requirements from both the buyer’s and seller’s conveyancers meaning 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 both landlords and managing agents can introduce systems to collate the information safe in the knowledge that both the buyer’s and seller’s conveyancers will accept it saving an estimated five to 10 working days on average. Consumers will also save money as the additional requests for information will only be required where an issue is revealed which requires further investigation.
Beth de Montjoie Rudolf, legal services consultant at Move with Us, said: “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.
“As the home of the UK’s largest network of independent estate agents and one of the largest conveyancing panel managers, it is vital for us to ensure that our agents and conveyancers are provided with the right tools to reduce transaction times for all property sales. The enquiry process previously adopted for leasehold properties was an unnecessary burden for agents and conveyancers alike who are increasingly under pressure to complete sales quickly, especially in an improving property market where delays in transaction times are being reported.
“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.”
Jonathan Smithers, deputy vice president of The Law Society, said: “Having a standardised format will be advantageous to sellers, buyers, solicitors and conveyancers dealing with leasehold property. It will not only bring clarity to the part of the procedure that deals with obtaining necessary leasehold information but may also clarify some issues relating to time and cost. It will also mean that everyone becomes familiar with one form, inevitably making the process more cohesive.”
Andrew Bulmer, UK residential director at RICS, added: “RICS are delighted to have been part of this joint-industry success story in simplifying and speeding up the conveyancing of flats and apartments. The new standard enquiry form for essential leasehold information will help conveyancers, property managers and surveyors to deliver a swifter, more consistent and more transparent service to buyers and sellers alike.”