Estate agents will have to give buyers more leasehold information much earlier in the process if the Government’s sales sector reforms become reality, a leading expert has warned.

Mike Somekh (main image), from residential property specialists The Freehold Collective, says while the changes will improve transparency and cut the number of failed transactions, it will mean sales agents will have to do much more work before the conveyancing process starts in earnest.

The changes, which will affect all property transactions, will impact agents selling leasehold properties hardest because the information required up-front will be much more detailed.

Up-front

This will include lease length, ground rent and service charges, freeholder details and building management arrangements, allowing buyers to make better-informed decisions before making an offer.

Agents will also have to reveal whether a property is part of a Right to Manage (RTM) or Residents’ Management Company (RMC) and also if it has a share of freehold, whether any major works or costly repairs planned, find out if the building complies with modern fire and safety regulations and highlight any lease restrictions.

Somekh says: “Too many buyers discover crucial leasehold details far too late in the process.
“Early disclosure, ideally starting from when a property is marketed, will help prevent disappointment, wasted costs, and mistrust.

“By asking the right questions from the outset, agents can play a key role in making the system more transparent and efficient.”

“If implemented effectively, the changes could mark a major step toward rebuilding confidence in the leasehold sector – ensuring smoother, fairer, and better-informed property transactions for all.”