Back In 2007, I bought a leasehold house in Audlem. Conveyancing and HSBC Bank mortgage are in place. I have received a letter from someone claiming to own the freehold. Attached was a demand for arrears of ground rent dating back to 1996. The conveyancing solicitor in Audlem who previously acted has long since retired.Do I pay?

The first thing you should do is contact HMLR to make sure that the individual purporting to own the freehold is in fact the new freeholder. You do not need to incur the fees of a Audlem conveyancing practitioner to do this as it can be done on-line for a few pound. 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 am employed by a reputable estate agent office in Audlem where we have witnessed a few leasehold sales jeopardised due to short leases. I have been given contradictory information from local Audlem conveyancing solicitors. Could you confirm whether the owner of a flat can initiate 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 start the lease extension process and assign the benefit of the notice to the purchaser. This means 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 has to be done prior to, or simultaneously with 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 buyer.

Can you provide any advice for leasehold conveyancing in Audlem from the perspective of speeding up the sale process?

• Much of the delay in leasehold conveyancing in Audlem can be avoided where you get in touch lawyers the minute your agents start marketing the property and ask them to collate the leasehold documentation needed by the purchasers’ lawyers.
• The majority freeholders or Management Companies in Audlem levy fees for providing management packs for a leasehold property. You or your lawyers should discover the fee that they propose to charge. The management information sought as soon as you have a buyer, thus reducing delays. The typical amount of time it takes to receive management information is three weeks. It is the most frequent cause of frustration in leasehold conveyancing in Audlem.

If you have carried out any alterations to the property would they have required Landlord’s permission? In particular have you laid down wooden flooring? Audlem leases often stipulate that internal structural alterations or installing wooden flooring require a licence issued by the Landlord approving such works. If you dont have the paperwork to hand you should not contact the landlord without checking with your conveyancer in the first instance.

A minority of Audlem leases require Licence to Assign from the landlord. If this applies to your lease, it would be prudent to notify your estate agents to make sure that the purchasers obtain financial (bank) and professional references. The bank reference will need to confirm that the buyers are able to meet the yearly service charge and the actual amount of the service charge should be quoted in the bank’s letter. You will therefore need to provide your estate agents with the service charge figures so that they can pass this information on to the purchasers or their lawyers.

If you hold a share in a the Management Company, you should make sure that you hold the original share document. Obtaining a new share certificate can be a lengthy formality and slows down many a Audlem conveyancing transaction. If a new share certificate is needed, do contact the company officers or managing agents (if relevant) for this at the earliest opportunity.

Completion in due on our sale of a £500000 maisonette in Audlem next week. The managing agents has quoted £408 for Landlord’s certificate, insurance certificate and previous years service charge statements. Is it legal for a freeholder to charge such fees for a flat conveyance in Audlem?

For the majority of leasehold sales in Audlem conveyancing will involve, questions about the management of a building inevitably needing to be answered directly by the freeholder or its agent, this includes :

• Answering conveyancing due diligence questions
• Where consent is required before sale in Audlem
• Copies of the building insurance and schedule
• Deeds of covenant upon sale
• Registering of the assignment of the change of lessee after a sale

Your conveyancer will have no control over the level of the charges for this information but the average costs for the information for Audlem leasehold premises is £350. For Audlem conveyancing transactions it is customary for the seller to pay for these costs. The landlord or their agents are under no legal obligation to answer such questions most will be willing to do so - albeit often at exorbitant prices where the fees bear little relation to the work involved. Unfortunately there is no law that requires fixed charges for administrative tasks. Neither is there any legal time frame by which they are obliged to supply answers.

In relation to leasehold conveyancing in Audlem what are the most common lease problems?

Leasehold conveyancing in Audlem is not unique. Most leases are unique and drafting errors can result in certain clauses are missing. The following missing provisions could result in a defective lease:

• A provision to repair to or maintain elements of the building
• A duty to insure the building
• Clauses dealing with recovering service charges for expenditure on the building or common parts.
• Maintenance charge proportions which don’t add up to the correct percentage

A defective lease can cause issues when trying to sell a property as they can affect a potential buyer’s ability to obtain a mortgage. Birmingham Midshires, Bank of Scotland, and Alliance & Leicester all have very detailed conveyancing instructions when it comes to what is expected in a lease. Where a lender has been advised by their lawyers that the lease does not cover certain provisions they may refuse to provide security, forcing the buyer to withdraw.

Audlem Conveyancing for Leasehold Flats - A selection of Questions you should consider before buying

Most Audlem leasehold flats will have a service bill for the upkeep of the building levied by the landlord. Where you purchase the flat you will have to meet this contribution, usually periodically accross the year. This can be anything from two or three hundred pounds to thousands of pounds for large purpose-built blocks. In all likelihood there will be a rentcharge for you to pay annual, normally this is not a significant figure, say about £50-£100 but you should to enquire it because on occasion it could be many hundreds of pounds. Best to be warned whether redecorating or some other significant cost is anticipated to be shared by the leasehold owners and will dramatically increase the the service charges or require a specific invoice. How many years remain on the lease?

Other Topics

Lease Extensions in Audlem