Frequently asked questions relating to Babbacombe leasehold conveyancing
Looking forward to exchange soon on a leasehold property in Babbacombe. Conveyancing lawyers have said that they are sending me a report tomorrow. Are there areas in the report that I should be focusing on?
Your report on title for your leasehold conveyancing in Babbacombe should include some of the following:
- You should receive a copy of the lease
I today plan to offer on a house that appears to tick a lot of boxes, at a reasonable figure which is making it more attractive. I have just found out that the title is leasehold as opposed to freehold. I am assuming that there are particular concerns purchasing a leasehold house in Babbacombe. Conveyancing lawyers have not yet been instructed. Will my lawyers set out the implications of buying a leasehold house in Babbacombe ?
Most houses in Babbacombe are freehold rather than leasehold. In this scenario it’s worth having a local solicitor used to dealing with such properties who can help the conveyancing process. It is clear that you are purchasing in Babbacombe in which case you should be shopping around for a Babbacombe conveyancing solicitor and be sure that they are used to advising on leasehold houses. First you will need to check the number of years remaining. Being a lessee you will not be at liberty to do whatever you want to the property. The lease will likely included provisions such as requiring the landlord’spermission to carry out changes to the property. You may also be required to pay a service charge towards the upkeep of the communal areas where the house is located on an estate. Your conveyancer should appraise you on the various issues.
I've recently bought a leasehold house in Babbacombe. 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. 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).
What advice can you give us when it comes to choosing a Babbacombe conveyancing practice to deal with our lease extension?
If you are instructing a conveyancer for lease extension works (regardless if they are a Babbacombe conveyancing practice) it is most important that he or she should be familiar with the legislation and specialises in this area of work. We advise that you speak with several firms including non Babbacombe conveyancing practices before you instructing a firm. Where the conveyancing practice is ALEP accredited then that’s a bonus. Some following of questions might be useful:
- How experienced is the firm with lease extension legislation?
Are there common deficiencies that you see in leases for Babbacombe properties?
Leasehold conveyancing in Babbacombe is not unique. Most leases are unique and legal mistakes in the legal wording can sometimes mean that certain sections are missing. The following missing provisions could result in a defective lease:
- Repairing obligations to or maintain parts of the property
- 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
You could encounter a problem when selling your property if you have a defective lease as they can affect a potential buyer’s ability to obtain a mortgage. HSBC Bank, The Mortgage Works, and Platform Home Loans Ltd all have express conveyancing instructions when it comes to what is expected in a lease. If a mortgage lender believes that the lease is problematic they may refuse to grant the mortgage, obliging the buyer to withdraw.
Babbacombe Leasehold Conveyancing - Examples of Questions you should consider before buying
The majority of Babbacombe leasehold properties will have a service charge for maintenance of the building levied on behalf of the management company. Should you acquire the flat you will have to meet this amount, usually in instalments accross the year. This could differ from two or three hundred pounds to thousands of pounds for blocks with lifts and large communal grounds. There will also be a ground rent to be met annual, this is usually not a large amount, say approximately £25-£75 but you need to enquire as occasionally it can be surprisingly expensive.
In the main the outlay for major works tend not to be incorporated into the maintenance charges, although some managing agents in Babbacombe ask tenants to pay into a reserve fund and this is used to offset against larger works.
Where a Babbacombe lease has fewer than eighty years it will impact the value of the property. It is worth checking with your lender that they are happy with the length of the lease. A short lease means that you will almost definitely require a lease extension at some point and you need to have some idea of what this will be. For most Babbacombelease extensions you will be required to have owned the property for two years before you are eligible to exercise a lease extension.