Reasons Your Leasehold Property Sale Can Be Delayed

There are many reasons why buying a Manchester apartment can be delayed, but when you’re on the other side of the transaction, it can be an entirely different story.

Selling an apartment in Manchester can be tricky and present its own set of challenges that can dramatically prolong the exchange and completion date. 

Unlike freehold property transactions, leasehold sales (which encompasses apartments and flats) involve additional layers of complexity that can catch even the most experienced homeowners off guard. The team here at Julie Twist have, therefore, prepared some carefully curated advice to help you understand the types of challenges your Manchester apartment sale might include, and how to speed up the process as much as possible.

Why is My Manchester Property Sale Taking Longer than Expected?

Renovations, extensions and refurbishment compliance

Manchester’s city centre is home to a wealth of apartment developments, and property owners have authorisation to conduct minor alterations such as decorating or removing non-structural walls between rooms. However, if the proper consent was not obtained from the managing agent or freeholder, these can cause complications which delay the inevitable sale.

Where there is evidence the property has undergone any renovations, extensions or refurbishments, the buyers’ conveyancing solicitors will check not only was proper consent obtained, but also for any required party wall agreement, in accordance with the Party Wall Act 1996. Any change to a shared wall or floor between flats and apartments will be subject to review, and proper consent must have been sought for altering such areas. Missing or absent documentation for such works can significantly delay proceedings while the necessary paper trails are followed. 

Third party involvement

A common frustrating pain point for many leasehold property sellers concerns the involvement of third parties, usually freeholders, estate agents or management companies. Freehold sales often put the seller (and their chosen estate agent in Manchester) at the heart of the discussions and the submission and processing of documents. However, leasehold transactions involve numerous third parties who may not have the same urgency to complete, or who might be constrained by other responsibilities or cumbersome processes.

Management companies are required to provide comprehensive information packs including (but not limited to): 

• Service charge accounts

• Statutory notices

• Qualifying long-term agreement (QLTA) notices

• Insurance details

• Planned maintenance schedules

• Compliance certificates (fire safety, electricity, etc.)

• Sinking fund correspondence

Many private management companies operate without statutory response timescales, meaning correspondence can take weeks or even months to provide essential documents. The situation becomes even more complex when management companies are restructuring or undergoing changes in managing agents. Missing certificates, records or documents can delay proceedings significantly.

Lease-Specific Legal Complications

Lease agreements often present difficult hurdles as the sales process gets closer to completion. Buyers’ solicitors will conduct thorough legal assessments of the lease terms, including any clauses, restrictions, ground rent arrangements, escalation clauses or restrictive covenants. Short lease terms are particularly challenging, with properties with fewer than 80 years remaining on the lease facing mortgage restrictions, narrowing the pool of potential buyers. This often warrants extending the apartment’s or flat’s lease which can be very difficult and costly.

Property Chain Complications 

Property chains in leasehold-heavy markets like Manchester city centre can be prone to breaking. If multiple leasehold properties are involved in a chain, each with different management companies, lease terms, and compliance hurdles, it can create a lengthy exchange and completion process. Even just one leasehold property in the chain can stall the others, with the interconnected transactions grinding to a halt simultaneously until the pressing matter is addressed. 

Market Conditions and External Factors

Recent changes to leasehold legislation have led to a wave of uncertainty in the market. The Leasehold and Freehold Reform Act has introduced new rights for leaseholders, and the most common areas of confusion for buyers, sellers and property professionals alike surround the implementation timeline(s).

For instance, some buyers now delay purchases as they await less ambiguous guidance and advice on new regulations, while others are in a hurry to complete before certain changes take effect. This has created an uneven market that is built on the essence of timing and decisiveness.
 

The wider economy is also playing a vital role. Lenders have become cautious of leasehold properties, particularly those with onerous ground rent clauses or poor management arrangements. As a result, mortgage availability for certain leasehold properties has tightened, thus extending average sale periods.

Professional Service Delays

The quality and responsiveness of your chosen solicitors also plays a factor in your sales timescale. They may be handling multiple property transactions and have to prioritise accordingly, which may, in turn, delay your sale. Other parties like surveyors may be tied up with other surveys or have lengthy response times, and for leasehold apartments there may be additional hurdles for them to follow. This can all extend the process.

Mitigating Sale Delays

Delays are unavoidable in most cases, but if you remain proactive and approachable, many of the common issues can be minimised. 

• Gather all relevant documents as early as you can, including lease agreements, service charge accounts, and compliance certificates.

• Establish good relationships with your management company and meet all service charge and maintenance payment terms and requirements to avoid any arrears or last-minute complications.

• Maintain regular and open communication with managing agents to ensure you’re aware of upcoming major works or compliance issues that might affect your sale.

• Work with agents who are experienced in handling complex leasehold arrangements, and who are familiar with many local management companies and lease terms. 

Julie Twist are very well versed in the apartment-heavy centre of Manchester and can help you sell your leasehold property as quickly as possible, for the best available price. Ready to put your Manchester apartment on the market? Get in touch with Julie Twist estate agents today, and we will get started.


Written by Annie Button