Leasehold & new-build
Leasehold transactions add the landlord's title, the lease terms and any required consents, while new-build purchases follow a distinct protocol.
What "Leasehold & new-build" covers
- Investigate both the freehold or superior title and the lease itself, checking the unexpired term, ground rent and service charge.
- A lease granted for more than 7 years is a registrable disposition requiring its own registered title: LRA 2002 s.27.
- An assignment of an existing lease may require the landlord's licence to assign, and often a deed of covenant from the buyer.
- Check the covenants, forfeiture provisions and any restrictions on alienation, alterations or use.
- Raise leasehold enquiries of the landlord or management company (form LPE1) on service charges, arrears and consents.
- A lease of three years or less taking effect in possession at a market rent can be created without a deed: LPA 1925 s.54(2).
- New-build purchases follow the Law Society new-build protocol, come with an NHBC Buildmark or similar warranty, and often run to a shorter timescale.
Key cases & statutes
The authorities and provisions most likely to matter for this subtopic:
How it's tested in SQE1
SQE1 uses single best answer questions: a short factual scenario, one precise question, and five options of which only one is the best answer on the law applied to the facts. For leasehold & new-build, expect to be asked what the correct legal position is, what a party may or must do, or which outcome follows — with more than one option looking arguable. Reading the facts carefully and eliminating the near-misses is the skill that earns the mark.
Where candidates lose marks
- Overlooking the need to register a lease granted for more than 7 years.
- Completing an assignment without a required landlord's consent.
- Failing to warn the client about onerous ground rent or escalating service charges.
Learn and practise this subtopic
A guided lesson and exam-style questions on leasehold & new-build.
FAQ
Is leasehold & new-build tested on SQE1?
Yes — leasehold & new-build is part of the SQE1 Property Practice syllabus (FLK2) and can appear in single best answer questions.
How is leasehold & new-build examined in SQE1?
SQE1 tests it by application: you're given a realistic scenario and choose the single best answer from five options. The focus is on using the law correctly, not reciting it — knowing the leading authorities (LRA 2002 s.27 (leases over 7 years), licence to assign) helps.