Top Five Questions relating to Ascot leasehold conveyancing
Due to sign contracts shortly on a basement flat in Ascot. Conveyancing lawyers inform me that they will have a report out to me on Monday. Are there areas in the report that I should be focusing on?
The report on title for your leasehold conveyancing in Ascot should include some of the following:
- Details of the parties to the lease, for example these could be the leaseholder (you), head lessor, landlord
I am looking at a couple of flats in Ascot which have about fifty years remaining on the lease term. Will this present a problem?
There are plenty of short leases in Ascot. The lease is a right to use the property for a period of time. As the lease gets shorter the marketability of the lease decreases and results in it becoming more costly to extend the lease. This is why it is generally wise to increase the term of the lease. Sometimes it is difficult to sell a property with a short lease as mortgage companies may be unwilling to lend money on properties of this type. Lease enfranchisement can be a difficult process. We advise that you seek professional help from a solicitor and surveyor with experience in this arena
I am employed by a reputable estate agent office in Ascot where we have witnessed a few flat sales jeopardised as a result of leases having less than 80 years remaining. I have been given conflicting advice from local Ascot conveyancing solicitors. Can you clarify whether the seller of a flat can initiate the lease extension formalities for the buyer?
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. This means that the buyer need not have to sit tight for 2 years for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment has to be done prior to, or simultaneously with completion of the disposal of the property.
An alternative approach is 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.
We expect to complete our sale of a £250000 flat in Ascot next week. The freeholder has quoted £324 for Landlord’s certificate, insurance certificate and previous years service charge statements. Is the landlord entitled to charge an administration fee for a flat conveyance in Ascot?
Ascot conveyancing on leasehold apartments often necessitates the buyer’s conveyancer submitting enquiries for the landlord to answer. Although the landlord is under no legal obligation to address such questions the majority will be content to assist. They may levy a reasonable administration fee for responding to questions or supplying documentation. There is no set fee. The average costs for the information that you are referring to is £350, in some cases it is in excess of £800. The management information fee demanded by the landlord must be accompanied by a synopsis of entitlements and obligations in respect of administration charges, without which the charge is technically not due. Reality however dictates that one has no choice but to pay whatever is demanded if you want to sell the property.
When it comes to leasehold conveyancing in Ascot what are the most common lease defects?
Leasehold conveyancing in Ascot is not unique. Most leases are individual and legal mistakes in the legal wording can result in certain sections are missing. The following missing provisions could result in a defective lease:
- Repairing obligations to or maintain elements of the property
- A duty to insure the building
- Clauses dealing with recovering service charges for expenditure on the building or common parts.
- Service charge per centages that don't add up correctly leaving a shortfall
A defective lease can cause issues when trying to sell a property primarily because it impacts on the ability to obtain a mortgage on the property. Accord Mortgages Ltd, Virgin Money, and TSB all have express conveyancing instructions when it comes to what is expected in a lease. If a mortgage lender believes that the lease does not cover certain provisions they may refuse to provide security, obliging the buyer to withdraw.
Leasehold Conveyancing in Ascot - A selection of Queries before buying
It would be prudent to find out if there is anything that is prohibited in the lease. For example plenty of leases prohibit pets being allowed in in a block in Ascot. If you love the flatin Ascot however your dog is not allowed to move with you then you have a very hard choice.
Best to be warned whether changing the roof or some other significant cost is due shortly to be shared between the leasehold owners and may well dramatically impact the level of the maintenance charges or result in a one off invoice.
How many of the leaseholders are in arrears for their maintenance charge payments?