Sales

When selling a property in the UK, you must disclose the following:

• Major defects (damp, subsidence, structural issues)
• Disputes with neighbours
• Alterations and extensions (with planning permission)
• Rights of way or restrictions
• Environmental risks (flooding, contamination)
• Leasehold details (service charges, ground rent)

Being unable to provide any information about these can lead to serious legal issues. But worry not, Batley Law has you covered for a smooth property sale.

You are liable for misrepresentation or undisclosed issues after selling your house, under UK law. Liability can last up to six years under the Misrepresentation Act 1967, so it’s best to steer clear of such issues by providing full disclosure.

Yes, a seller and a buyer can be in contact throughout the property transactions, but only through their solicitors or real estate agents. This way all agreements remain legally sound, navigation negotiations professionally and therefore, avoiding any misunderstandings.

This might come off as a surprise, but a seller can back out of a property sale at any time before contracts are exchanged without any legal consequences. However, once contracts are exchanged, the sale is legally binding, and pulling out can lead to penalties or legal action.

Estate agents have a legal obligation to act in the best interests of the seller. This includes providing accurate property details, seeking the best possible price, and keeping the seller informed of offers. They must also maintain confidentiality and act with care and honesty throughout the process.

Capital Gains Tax (CGT) on selling a property in the UK is applied to the profit made from the sale. The tax rate depends on your income tax bracket:

• Basic rate taxpayers: 18% on the profit from the sale of a residential property.
• Higher and additional rate taxpayers: 28% on the profit from the sale of a residential property.

Exemptions may apply, such as Private Residence Relief if the property was your main home, which could reduce or eliminate the CGT liability. The annual tax-free allowance (Annual Exempt Amount) for individuals is £6,000 (as of the 2024/25 tax year).

Batley Law can guide you through the tax implications of selling your property.

Yes, you can sell a property with a tenant in it, but the sale process will depend on the type of tenancy agreement in place.

• Assured Shorthold Tenancy (AST): The sale can go ahead, and the new owner will inherit the tenant’s rights under the existing lease. You must give the tenant the required notice if you plan to sell with vacant possession.
• Long-term Tenancy: The tenant’s lease continues with the new owner, and the tenant is protected by law.

Make sure to inform the tenant and follow legal procedures to ensure a smooth sale. Batley Law can help navigate these details.

Yes, you can sell a leasehold property, but key factors affect the process:

• Lease length: Most buyers and lenders prefer at least 80 years remaining. If it’s below this, you may need to extend the lease before selling.
• Lease extension costs: Extending a lease with fewer than 80 years left can be expensive due to marriage value, adding 50% of the property’s increased value to the cost.
• Ground rent and service charges: Buyers will check these costs, as excessive fees can impact mortgage approval.
• Freeholder’s consent: Some leases require permission from the freeholder before selling.

Understanding your lease terms is crucial. Batley Law can assist with selling your leasehold property smoothly.

If you sell your main residence, you usually don’t pay Capital Gains Tax (CGT) due to Private Residence Relief.

If it’s a second home or investment property, CGT applies:

• Basic rate taxpayers: 18% on profits
• Higher rate taxpayers: 28% on profits
• Annual tax-free allowance: £3,000 (2024/25 tax year)

CGT must be reported and paid within 60 days of the sale. Batley Law can guide you through the process.