We will assist you at every stage of the property process, keeping you well-informed, and providing support and advice.
Buying or Selling Jersey Flying Freehold Property
Whether you’re a first-time buyer or some way up the Jersey property ladder, obtaining advice and assistance from experienced friendly and helpful Jersey residential property lawyers and conveyancers can make all the difference when buying Jersey flying freehold property or looking to sell.
Flying freehold property is popular with young individuals and couples purchasing their first home. This process can be a little more complicated than buying a Jersey freehold property, but we will ensure you understand the steps and are kept informed as to how your transaction is progressing at all times.
So what is flying freehold property? And how Parslows help with the process of selling or buying a flying freehold property in Jersey?
Our Jersey flying freehold experts will explain the process and be on hand should you require clarity on any part of the process. Our team of highly experienced residential property lawyers and conveyancers provide an exceptional service for all our clients that is timely, accurate and pragmatic, and handled in an uncomplicated and friendly way.
If you are buying a Jersey flying freehold property, or looking to sell your current home and require property law advice, contact Parslows, Jersey residential property experts.
Buying Jersey flying freehold property
What is Jersey flying freehold property?
Flying freehold is a form of co-ownership: It is where a property is divided into individual apartments, generally, residential units which, as in any building in multiple occupations, share certain areas (entry halls, stairways, lifts, gardens, yards, etc.) and services (drainage, electricity, etc.). The co-owners form an incorporated Association and are required to abide by a declaration of co-ownership, as registered in the Public Registry.
What is the difference between flying freehold property and share transfer property?
A key difference between flying freehold and share transfer property in Jersey is the difference in governing laws. Flying freehold ownership falls under the Loi (1991) sur la co-propriété des immeubles bâtis.
To purchase a flying freehold apartment, you attend the Royal Court sitting on a Friday afternoon to pass a contract.
With flying freehold, you hold a ‘flying freehold interest’. You own the property. With a share transfer property, you hold shares in a company. You do not own the property. A flying freehold interest falls within your immovable estate not movable estate.
What role does the Jersey conveyancer have in relation to buying your Jersey freehold property?
In basic terms and no particular order, your conveyancer will carry out the following when assisting you on the purchase of a Jersey flying freehold property.
- Check title
Parslows Jersey conveyancers will check the title to the Association property. They will also check the title to the apartment to ensure the seller owns it.
- Review search replies
We will send out search letters to various agencies who may be able to provide information in regarding the property, and all rights, either over or for the benefit of the property, are adequately set out in the draft contract.
- Review the declaration of co-ownership
We will review the declaration of co-ownership. This document sets out the rules and obligations of the Association and the co-owners.
- Review the draft contract of Sale
Parslows Jersey conveyancers will review the property’s description, given in the draft contract of sale by the Vendor’s lawyer, to ensure that it corresponds with the information provided in the Public Registry and on the Declaration.
- Property visit
As soon as possible after the title has been checked and the search letter replies have been reviewed, Parslows Jersey conveyancers will attend on-site. The purpose of the site visit is to ensure that the Vendor’s draft sale contract corresponds with the circumstances on site. We will thereafter draw to your attention any defects and or issues.
Can I purchase a Jersey flying freehold property?
The owning of Jersey flying freehold property is governed by the same rules of ownership as Jersey freehold. To purchase flying freehold property in Jersey, you must hold a valid registration card providing entitlement to purchase pursuant to the Control of Housing and Work (Jersey) law 2012. If you do not have this card, and are qualified to hold one, you should attend the population office as soon as possible to obtain it.
Do I need a survey and valuation before I purchase?
While your bank will request a survey for a valuation, this is to ensure that its loan to you is safeguarded. This is not necessarily comprehensive, and you should consider carefully the benefit of instructing a surveyor to carry out a full survey.
Does the conveyancer check the condition of a Jersey flying freehold property?
A Jersey conveyancer will not check the physical condition of a Jersey flying freehold property. This is for a surveyor who will have the professional experience to do so. A conveyancer will check a site to ensure the boundaries of the property correspond with the draft contract and other such legal issues.
Do I have to pay tax or stamp duty to purchase a Jersey flying freehold property?
Stamp duty is a duty levied by the Treasurer of the States and applies to every flying freehold contract which is passed before the court. First-time buyers may qualify for reduced Jersey stamp duty. It is payable by the buyer at the time of purchase.
Do I sign a contract to purchase Jersey flying freehold property?
Purchasing flying freehold property does not require you to sign a contract; instead, it is passed in the Royal Court, and you or your attorney will attend court on a Friday afternoon to swear an oath to abide by the terms of the contract.
Do I have to attend the Royal Court to pass a contract to sell or buy a flying freehold property?
If you so wish, you may attend Royal Court in person. Alternatively, you can, by power of attorney, appoint someone else to attend on your behalf for purchasing flying freehold property. If you attend court you must wear formal attire. Failure to dress appropriately may result in the court refusing to pass the contract.
Do I hold deeds to prove that I own Jersey flying freehold property?
Jersey does not have the concept of Property deeds. A copy of the contract will be retained in the Public Registry and will constitute evidence of your title to your flying freehold property.
When do I get keys for the property?
Once the contract has passed before the Royal Court, you will be able to collect the keys to the property from the estate agent. The estate agent invariably negotiates the exact time at which possession is handed over.
When should I insure the property?
Buildings insurance will be taken out in the name of the Association, so you will not need to do this. You will, however, be responsible for contents insurance.
Should I make a Will when I buy a Jersey flying freehold property?
We would always suggest that you hold a Will to deal with what happens with your property when you pass away. If you do not do this your property will be inherited under the terms of the Wills and Successions (Jersey) Law 1993.
Link to article on buying flying freehold property
Funding the purchase of your flying freehold property
How do lawyers assist regarding purchase funding of a Jersey flying freehold property?
Parslows conveyancers will advise on the legal implications of entering into the bank’s security documents, for example, what will happen if you do not keep up your mortgage repayments. It will be for your financial advisor to advise and agree your mortgage funding application.
What do I do about balance of funds/deposit?
In the usual course, the bank will not provide 100% of the mortgage. As such, you will be required to make up the difference. This difference will include not only the balance for the purchase but also stamp duty and legal fees.
What does the bank do with the mortgage - do they transfer to me or to you?
The bank will transfer funds direct to Parslows. You will also need to transfer the balance of funds to Parslows prior to the purchase of your Jersey flying freehold property. We will have provided you with a completion statement that sets out the total payments in full.
Do I pay Stamp Duty on my mortgage?
A loan secured against flying freehold property will attract stamp duty. This is in addition to the duty or tax that you will pay to purchase your property. You may qualify for reduced stamp duty if you are a first-time buyer.
When are the funds to pay the Vendor paid?
While you will pass Jersey flying freehold property contract on a Friday, funds do not flow to the Vendor until the Tuesday immediately following.
Linking on mortgage
Funding the purchase of your flying freehold property
How does the Jersey conveyancer assist when selling your Jersey flying freehold property?
In basic terms the following procedure will be followed (in no particular order) by your conveyancer with regard to advising on selling a Jersey flying freehold property:
Prepare and draft the contract of purchase
We will send this to the purchaser’s lawyer. They will then check this contract is appropriate for the transaction.
Liaise with Association Representative
To obtain Association documents such as Declaration of Association and minutes of meetings. These will be provided to the Purchaser’s lawyer.
The purchaser lawyer will check the title, attend on-site and review search letter replies from the various Jersey utility companies. Parslows conveyancers will respond to any queries they may have and if necessary liaise with you to resolve such issues.
We will liaise with the seller’s mortgage lender to ensure that all mortgages and secured charges are settled from the sale monies.
Repayments from the proceeds of sale of your Jersey flying freehold property
When do I receive my proceeds of sale?
The sale will occur on a Friday, with payment being made on Tuesday immediately following. You will receive the balance of funds thereafter, depending upon the banking system.
What happens with regard to rates when I sell?
All Jersey flying freehold contracts contain a clause that apportions the rates for your period of occupation.
Who will pay the estate agent when I have sold my property?
It is standard practice for the Vendor lawyer to pay the estate agent’s fee out of the proceeds of the sale. This will be done on Tuesday immediately following the sale day.
Who will reimburse my mortgage when I have sold my property?
Parslows will repay your mortgage provider out of the proceeds of the sale.
Do I need to notify Jersey government that I have changed address?
You are obliged to file a notification of your change of address. This will be in relation to the Rates (Jersey) Law the Control of Housing and Work (Jersey) Law and also in relation to your driving license if you are moving parish.
Will I be obligated to pay a service charge when I own a flying freehold property?
As you will own a property in co-ownership with others, a service charge will likely be levied. This will be used to pay common costs that the Association incurs.
How do the co-owners make decisions about the property?
The Association takes decisions in a general assembly of the co-owners in relation to Association property; it can act on their behalf, acquire and alienate property and rights, and litigate. A co-owner will have sole ownership of an individual unit and ownership in common communal areas (the share or lot).
Do I need to attend Association meetings?
Association meetings are held when decisions need to be made, and you will be obligated to abide by any such decision. Therefore it may be important for you to attend meetings so you can have your say.