When a Leasehold Ends
If you’re thinking about buying a leasehold property, you may be wondering what happens when a leasehold ends. When a leasehold ends, the building will revert back to the freeholder.
Buying a leasehold property can be a great way to buy into a particular community at a lower price than a traditional home or condo. However, you should know what to expect before you decide to purchase one.
The value of a leasehold property will drop as the lease expires, but that is generally counteracted by market movements and the amount of interest a bank would lend to a new buyer of a leasehold property in a certain area.
What Happens When a Leasehold Ends?
You should be aware of this when considering the purchase of a leasehold property and speak to a Locations agent who will be able to guide you through the process step by step.
If your lease has an abatement clause, you might be able to end the tenancy early and receive possession of the premises before the lease has expired. If you’re unsure, ask your landlord to confirm this before signing a lease.
In most definite term leases, you’ll need to give a written notice 30 to 60 days before the end of your tenancy. Alternatively, you might need to pay a “break lease” fee in order to end your tenancy early. This can include a sum of money or your security deposit.
If you’re unable to get to your property before the end of your lease, it’s not too late to find somewhere else to live. There are several options, including using your last month’s rent deposit to pay for the remaining term of your lease or finding another property.
Some leases have an abatement clause that says that if you’re involved in the construction of your property and the builder does not get possession before the lease expires, you will be required to surrender the land upon which your house was built. This will ensure that you can no longer use the land or make any further improvements to it once the builder is no longer involved.
If your lease has an abatement or termination clause that says you can end it before the lease has expired, you may be able to get a lawyer to help you. But you should be sure to check the laws in your state and federal jurisdictions.
Depending on your state and federal laws, you may be able to re-negotiate the terms of your lease with the landlord or get out of the lease without paying a penalty. You should also ask your lawyer to review any lease agreement you have with the landlord before signing it.
