Avonmouth leasehold conveyancing: Q and A’s
I am intending to rent out my leasehold flat in Avonmouth. Conveyancing solicitor who did the purchase is retired - so can't ask him. Is permission from the freeholder required?
Your lease dictates the relationship between the landlord and you the leaseholder; specifically, it will set out if subletting is prohibited, or permitted but only subject to certain conditions. The accepted inference is that if the lease contains no specific ban or restriction, subletting is permitted. The majority of leases in Avonmouth do not contain strict prohibition on subletting – such a provision would adversely affect the market value the property. Instead, there is usually simply a requirement that the owner notifies the freeholder, possibly supplying a duplicate of the sublease.
I work for a busy estate agent office in Avonmouth where we have experienced a number of flat sales jeopardised due to leases having less than 80 years remaining. I have received conflicting advice from local Avonmouth conveyancing solicitors. Can you clarify whether the owner of a flat can commence 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. 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 has to be done prior to, or simultaneously with 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 purchaser.
What advice can you give us when it comes to choosing a Avonmouth conveyancing firm to deal with our lease extension?
When appointing a conveyancer for your lease extension (regardless if they are a Avonmouth conveyancing practice) it is imperative that he or she should be familiar with the legislation and specialises in this area of conveyancing. We advise that you make enquires with two or three firms including non Avonmouth conveyancing practices before you instructing a firm. If the firm is ALEP accredited then so much the better. Some following of questions might be of use:
- If they are not ALEP accredited then what is the reason?
Can you provide any advice for leasehold conveyancing in Avonmouth with the intention of saving time on the sale process?
- Much of the delay in leasehold conveyancing in Avonmouth can be avoided where you instruct lawyers the minute you market your property and ask them to collate the leasehold information needed by the purchasers’ representatives.
- Many landlords or Management Companies in Avonmouth charge for providing management packs for a leasehold property. You or your lawyers should discover the fee that they propose to charge. The management pack sought on or before finding a buyer, thus accelerating the process. The average time it takes to obtain the necessary information is three weeks. It is the most frequent reason for frustration in leasehold conveyancing in Avonmouth.
What makes a Avonmouth lease unmortgageable?
There is nothing unique about leasehold conveyancing in Avonmouth. Most leases are individual and drafting errors can result in certain sections are missing. The following missing provisions could result in a defective lease:
- A provision to repair to or maintain elements of the premises
- A duty to insure the building
- A provision for the recovery of money spent for the benefit of another party.
- Maintenance charge proportions which don’t add up to the correct percentage
You will encounter difficulties when selling your property if you have a defective lease primarily because it impacts on the ability to obtain a mortgage on the property. Santander, The Royal Bank of Scotland, and Clydesdale all have very detailed requirements 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 purchaser to withdraw.
Avonmouth Leasehold Conveyancing - Sample of Queries Prior to Purchasing
This question is useful as a) areas can cause problems in the block as the common areas may start to deteriorate where services remain unpaid b) if the leaseholders have a dispute with the running of the building you will wish to have complete disclosure
How much is the ground rent and service charge?
You should want to discover as much as you can regarding the managing agents as they will impact your use and enjoyment of the property. As the owner of a leasehold property you are often in the clutches of the managing agents from a financial perspective and when it comes to day to day issues like the cleanliness of the communal areas. Enquire of other people whether they are happy with their management. On a final note, find out the dates that the maintenance charges are due to the appropriate party and specifically how they are spending that money.