Top Five Questions relating to Babbacombe leasehold conveyancing
Looking forward to exchange soon on a leasehold property in Babbacombe. Conveyancing solicitors have said that they report fully within the next couple of days. Are there areas in the report that I should be focusing on?
The report on title for your leasehold conveyancing in Babbacombe should include some of the following:
- The length of the lease term You should be advised as what happens when the lease ends, and informed of the importance of not letting the lease term falling below eighty years
Estate agents have just been given the go-ahead to market my basement flat in Babbacombe.Conveyancing has not commenced but I have just had a yearly maintenance charge invoice – what should I do?
It best that you discharge the service charge 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 until 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. Having a clear account will assist your cause and will leave you no worse off financially.
I work for a busy estate agency in Babbacombe where we have experienced a few leasehold sales put at risk as a result of leases having less than 80 years remaining. I have received contradictory information from local Babbacombe conveyancing solicitors. Could you shed some light as to whether the vendor of a flat can instigate the lease extension formalities for the buyer?
Provided that 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 need not have to sit tight for 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 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 purchaser.
Do you have any advice for leasehold conveyancing in Babbacombe from the point of view of saving time on the sale process?
- A significant proportion of the frustration in leasehold conveyancing in Babbacombe can be reduced where you get in touch lawyers as soon as you market your property and ask them to collate the leasehold documentation needed by the purchasers’ conveyancers.
- Some Babbacombe leases require Licence to Assign from the landlord. If this is the case, it would be prudent to notify your estate agents to make sure that the purchasers obtain financial (bank) and professional references. Any bank reference should make it clear that the buyer is able to meet the annual 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 actual amount of the service charge so that they can pass this information on to the buyers or their solicitors.
Are there frequently found defects that you encounter in leases for Babbacombe properties?
There is nothing unique about leasehold conveyancing in Babbacombe. All leases are unique and drafting errors can result in certain clauses are erroneous. For example, if your lease is missing any of the following, it could be defective:
- A provision to repair to or maintain parts of the building
- Insurance obligations
- 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 will have a problem when selling your property if you have a defective lease primarily because it impacts on the ability to obtain a mortgage on the property. Birmingham Midshires, Barnsley Building Society, and Alliance & Leicester all have express conveyancing instructions when it comes to what is expected in a lease. If a mortgage lender believes that the lease is defective they may refuse to grant the mortgage, forcing the purchaser to withdraw.
Babbacombe Leasehold Conveyancing - Sample of Queries before buying
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Does the lease include onerous restrictions?
The majority of Babbacombe leasehold properties will be liable to pay a service charge for the upkeep of the block set by the management company. Where you buy the flat you will have to meet this liability, normally quarterly accross the year. This may differ from a couple of hundred pounds to thousands of pounds for blocks with lifts and large common areas. In all likelihood there will be a ground rent for you to pay yearly, ordinarily this is not a large amount, say about £25-£75 but you should to enquire as sometimes it could be many hundreds of pounds.
On the whole the outlay for major works tend not to be included within maintenance charges, although there some managing agents in Babbacombe ask leaseholders to contribute towards a reserve fund created for the specific intention of establishing a fund for major repairs or maintenance.
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