I today plan to offer on a house that appears to be perfect, at a reasonable price which is making it more attractive. I have subsequently discovered that it's a leasehold as opposed to freehold. I am assuming that there are particular concerns buying a house with a leasehold title in Aberystwyth. Conveyancing solicitors have are soon to be instructed. Will my lawyers set out the implications of buying a leasehold house in Aberystwyth ?

Most houses in Aberystwyth are freehold rather than leasehold. In this scenario it’s worth having a local solicitor who is familiar with the area can help the conveyancing process. it is apparent that you are buying in Aberystwyth in which case you should be shopping around for a Aberystwyth conveyancing solicitor and check that they have experience in advising on leasehold houses. First you will need to check the number of years remaining. Being a leaseholder you will not be at liberty to do whatever you want to the property. The lease will likely included provisions for example obtaining the landlord’spermission to carry out alterations. It may be necessary to pay a contribution towards the maintenance of the estate where the house is located on an estate. Your conveyancer should appraise you on the various issues.

My wife and I purchased a leasehold flat in Aberystwyth. Conveyancing and National Westminster Bank mortgage went though with no issue. A letter has just been received from someone saying they have taken over the reversionary interest in the property. It included a ground rent demand for rent dating back to 1998. The conveyancing practitioner in Aberystwyth who acted for me is not around.What should I do?

First contact HMLR to be sure that this person is in fact the new freeholder. You do not need to instruct a Aberystwyth conveyancing lawyer to do this as it can be done on-line for less than a fiver. You should note that in any event, even if this is the legitimate freeholder, under the Limitation Act 1980 the limitation period for recovery of ground rent is six years.

I am tempted by the attractive purchase price for a couple of maisonettes in Aberystwyth which have in the region of fifty years left on the leases. Will this present a problem?

A lease is a right to use the premises for a prescribed time frame. As the lease gets shorter the saleability of the lease deteriorate and it becomes more costly to acquire a lease extension. For this reason it is advisable to extend the lease term. Sometimes it is difficult to sell a property with a short lease because mortgage lenders may be unwilling to lend money on such properties. Lease extension can be a protracted process. We advise that you seek professional help from a solicitor and surveyor with experience in this field

I am a negotiator for a long established estate agency in Aberystwyth where we have experienced a few flat sales jeopardised due to leases having less than 80 years remaining. I have been given inconsistent advice from local Aberystwyth conveyancing solicitors. Could you clarify whether the seller of a flat can commence the lease extension formalities for the buyer?

As long as the seller has been the owner for at least 2 years it is possible, to serve a Section 42 notice to commence the lease extension process and assign the benefit of the notice to the purchaser. This means that the buyer need not have to wait 2 years to extend their lease. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed before, or at the same time as completion of the disposal of the property.

Alternatively, it may be possible to agree the lease extension with the freeholder either before or after the sale. If you are informally negotiating there are no rules and so you cannot insist on the landlord agreeing to grant an extension or transferring the benefit of an agreement to the buyer.

Do you have any top tips for leasehold conveyancing in Aberystwyth from the perspective of speeding up the sale process?

• Much of the frustration in leasehold conveyancing in Aberystwyth can be reduced if you get in touch lawyers the minute you market your property and request that they start to put together the leasehold documentation needed by the purchasers’ conveyancers.
• The majority landlords or Management Companies in Aberystwyth charge for supplying management packs for a leasehold property. You or your lawyers should find out the fee that they propose to charge. The management pack can be applied for as soon as you have a buyer, thus accelerating the process. The typical amount of time it takes to obtain the necessary information is three weeks. It is the most frequent cause of delay in leasehold conveyancing in Aberystwyth.
• If there is a history of conflict with your landlord or managing agents it is essential that these are resolved before the property is marketed. The purchasers and their solicitors will be warry about purchasing a flat where a dispute is unsettled. You may need to swallow your pride and pay any arrears of service charge or settle the dispute prior to the buyers completing the purchase. It is therefore preferable to have any dispute settled ahead of the contract papers being issued to the buyers’ solicitors. You will still have to reveal particulars of the dispute to the buyers, but it is clearly preferable to present the dispute as historic rather than unresolved.
• If you have the benefit of shareholding in the Management Company, you should ensure that you have the original share document. Arranging a replacement share certificate can be a time consuming process and delays many a Aberystwyth conveyancing transaction. Where a duplicate share is necessary, you should approach the company director and secretary or managing agents (if applicable) for this sooner rather than later.
• You believe that you know the number of years remaining on your lease but you should verify this via your conveyancers. A buyer’s lawyer will be unlikely to recommend their client to to exchange contracts if the lease term is below 75 years. In the circumstances it is essential at an early stage that you identify whether the lease term requires a lease extension. If it does, contact your solicitors before you put your premises on the market for sale.

Leasehold Conveyancing in Aberystwyth - Sample of Queries before buying

How many of the leaseholders are in arrears for their maintenance charge payments? If a Aberystwyth lease has no more than eighty years it will affect the value of the apartment. It is worth checking with your mortgage company that they are happy with residual term of the lease. Leases with less than 80 years remaining means that you will most likely require a lease extension at some point and you need to have some idea of how much this would cost. Remember, in most cases you would need to own the premises for two years before you are entitled to extend the lease. It is important to be aware if fixing the lift or some other major work is coming up to be shared by the leaseholders and will dramatically increase the the maintenance costs or result in a specific invoice.