Planning to sign contracts shortly on a basement flat in Acle. Conveyancing solicitors assured me that they will have a report out to me next week. Are there areas in the report that I should be focusing on?

Your report on title for your leasehold conveyancing in Acle should include some of the following:

• You should be sent a copy of the lease

I've found a house that appears to tick a lot of boxes, at a reasonable figure which is making it more attractive. I have subsequently been informed that the title is leasehold rather than freehold. I am assuming that there are issues buying a leasehold house in Acle. Conveyancing lawyers have are soon to be instructed. Will they explain the issues?

The majority of houses in Acle are freehold and not leasehold. This is one of the situations where having a local conveyancer who is familiar with the area can assist with the conveyancing process. it is apparent that you are buying in Acle so you should seriously consider shopping around for a Acle conveyancing solicitor and check that they are used to advising on leasehold houses. First you will need to check the unexpired lease term. Being a leaseholder you will not be at liberty to do whatever you want to the property. The lease comes with conditions such as obtaining the freeholder’spermission to conduct changes to the property. It may be necessary to pay a service charge towards the upkeep of the communal areas where the property is located on an estate. Your lawyer should report to you on the legal implications.

I am tempted by the attractive purchase price for a couple of maisonettes in Acle both have about 50 years remaining on the lease term. Will this present a problem?

A lease is a legal document that entitles you to use the property for a period of time. As the lease shortens the saleability of the lease reduces and results in it becoming more costly to extend the lease. This is why it is advisable to extend the lease term. Sometimes it is difficulties arise selling premises with a short lease because mortgage companies less inclined to grant a loan on such properties. Lease extension can be a protracted process. We recommend you get professional help from a solicitor and surveyor with experience in this field

I've recently bought a leasehold property in Acle. Do I have any liability for service charges relating to a period prior to my ownership?

In a situation where the service charge has already been demanded from the previous lessee and they have not paid you would not usually be personally liable for the arrears. Strange as it may seem, your landlord may still be able to take action to forfeit the lease. A critical element of leasehold conveyancing for your conveyancer to be sure to have an up to date clear service charge receipt before completion of your purchase. If you have a mortgage this is likely to be a requirement of your lender.

If you purchase part way through an accounting year you may be liable for charges not yet demanded even if they relate to a period prior to your purchase. In such circumstances your conveyancer would normally arrange for the seller to set aside some money to cover their part of the period (usually called a service charge retention).

I am employed by a busy estate agency in Acle where we see a few flat sales put at risk due to short leases. I have been given conflicting advice from local Acle conveyancing firms. Could you confirm whether the owner of a flat can instigate the lease extension formalities for the purchaser on completion of the sale?

As long as the seller has been the owner for at least 2 years it is possible, to serve a Section 42 notice to start the lease extension process and assign the benefit of the notice to the purchaser. The benefit of this is that the buyer can avoid having to wait 2 years for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed before, or simultaneously with completion of the disposal of the property.

Alternatively, it may be possible to extend the lease informally by agreement with the landlord 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 purchaser.

Acle Conveyancing for Leasehold Flats - Examples of Queries Prior to Purchasing

How many of the leaseholders are in arrears for their service charge payments? The best form of lease arrangement is where the freehold title is in the ownership of the leaseholders. In this situation the lessees enjoy being in charge if their destiny and although a managing agent is often employed where the building is larger than a house conversion, the managing agent acts for the leaseholders themselves. On the whole the cost for major works tend not to be included within maintenance charges, although a few managing agents in Acle ask leasehold owners to pay into a sinking fund created for the specific purpose of establishing a fund for larger works.

Other Topics

Lease Extensions in Acle