The government's extension of its Home Information Packs (HIPs) scheme to include 3-bed homes from today (10 September) may leave some HIP providers floundering, a propery expert has warned.
HIPs were introduced by the government in July to cover 4-bed properties, which are mostly freehold properties, meaning creation of HIPs is quite straightforward. But the 3-bed properties include many leasehold properties such as flats.
"Compiling a HIP for a leasehold property is technically and practically much more challenging," said Rob Hailstone, chief executive of HIP supplier Hipag Services. "Most HIP suppliers should be able to compile a HIP for a registered freehold property but it takes years of experience in conveyancing and some real know-how to compile a HIP for a leasehold property quickly and efficiently."
Hailstone warned that not all estate agents or small scale developers would possess sufficient knowledge of the legal subtleties of leasehold properties, and felt that some could be left floundering by the new 3-bed ruling.
See also:
Home Information Packs: what do builders and developers need to know?
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