Common questions relating to Allestree leasehold conveyancing
I have just started marketing my 2 bed flat in Allestree.Conveyancing has not commenced but I have just had a quarterly maintenance charge demand – should I leave it to the buyer to sort out?
It best that you discharge the invoice as normal because all ground rent and service charges will be apportioned on completion, so you will be reimbursed by the buyer for the period running from after the completion date to the next payment date. Most managing agents will not acknowledge the buyer unless the service charges have been paid and are up to date so it is important for both buyer and seller for the seller to show that they are up to date. This will smooth the conveyancing process.
Back In 2005, I bought a leasehold flat in Allestree. Conveyancing and HSBC Bank mortgage organised. 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 1995. The conveyancing solicitor in Allestree who previously acted has long since retired.What should I do?
First contact HMLR to be sure that the individual claiming to own the freehold is indeed the registered owner of the freehold reversion. You do not need to instruct a Allestree conveyancing practitioner to do this as you can do this on the Land Registry website for £3. Rest assured that regardless, even if this is the rightful freeholder, under the Limitation Act 1980 the limitation period for recovery of ground rent is six years.
I've recently bought a leasehold house in Allestree. Do I have any liability for service charges relating to a period prior to my ownership?
Where the service charge has already been demanded from the previous owner 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. It is an essential part 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 a negotiator for a reputable estate agent office in Allestree where we see a few leasehold sales derailed as a result of leases having less than 80 years remaining. I have been given conflicting advice from local Allestree conveyancing firms. Can you clarify whether the vendor of a flat can instigate the lease extension process for the purchaser on completion of the sale?
As long as the seller has owned the lease for at least 2 years it is possible, to serve a Section 42 notice to kick-start the lease extension process and assign the benefit of the notice to the purchaser. The benefit of this is 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 sale.
An alternative approach is 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.
All being well we will complete our sale of a £500000 flat in Allestree on Friday in a week. The managing agents has quoted £324 for Landlord’s certificate, building insurance schedule and previous years service charge statements. Is it legal for a freeholder to charge exorbitant fees for a leasehold conveyance in Allestree?
Allestree conveyancing on leasehold apartments ordinarily necessitates administration charges invoiced by landlords agents :
- Answering pre-contract questions
- Where consent is required before sale in Allestree
- Supplying insurance information
- Deeds of covenant upon sale
- Registering of the assignment of the change of lessee after a sale
Allestree Conveyancing for Leasehold Flats - Examples of Questions you should consider before Purchasing
For most Allestree leaseholds the outlay for major works tend not to be wrapped into the service charges, although some managing agents in Allestree obliged leaseholders to pay into a sinking fund and this is used to offset against major repairs or maintenance.
It is important to be aware whether fixing the lift or some other significant cost is due in the foreseeable future to be shared amongst the leaseholders and may well dramatically impact the level of the service costs or require a one time invoice.
The majority of Allestree leasehold apartments will incur a service bill for the upkeep of the building invoiced on behalf of the landlord. Should you purchase the flat you will have to pay this liability, normally periodically during the year. This could vary from several hundred pounds to thousands of pounds for blocks with lifts and large communal grounds. In all probability there will be a ground rent to be met annual, normally this is not a large amount, say around £25-£75 but you should to check as occasionally it can be prohibitively expensive.