I am tempted by the attractive purchase price for a two apartments in Barrow In Furness which have about 50 years left on the leases. Should I regard a short lease as a deal breaker?

There are plenty of short leases in Barrow In Furness. The lease is a right to use the property for a period of time. As a lease shortens the value of the lease decreases and it becomes more expensive to acquire a lease extension. This is why it is generally wise to increase the term of the lease. It is often difficult to sell a property with a short lease because mortgage companies may be reluctant to lend money on such properties. Lease extension can be a difficult process. We advise that you seek professional help from a solicitor and surveyor with experience in this field

I work for a long established estate agent office in Barrow In Furness where we have experienced a number of leasehold sales jeopardised as a result of short leases. I have received inconsistent advice from local Barrow In Furness conveyancing solicitors. Could you clarify whether the seller of a flat can commence the lease extension formalities for the buyer?

Provided that the seller has been the owner for at least 2 years it is possible, to serve a Section 42 notice to commence 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 disposal of the property.

Alternatively, it may be possible 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.

What advice can you give us when it comes to finding a Barrow In Furness conveyancing practice to carry out our lease extension conveyancing?

If you are instructing a solicitor for your lease extension (regardless if they are a Barrow In Furness conveyancing firm) it is most important that they be familiar with the legislation and specialises in this area of work. We suggested that you talk with several firms including non Barrow In Furness conveyancing practices before you instructing a firm. If the firm is ALEP accredited then that’s a bonus. Some following of questions could be helpful:

• How many lease extensions has the firm conducted in Barrow In Furness in the last 12 months?
• Can they put you in touch with client in Barrow In Furness who can give a testimonial?

Do you have any top tips for leasehold conveyancing in Barrow In Furness from the perspective of expediting the sale process?

• Much of the delay in leasehold conveyancing in Barrow In Furness can be bypassed if you appoint lawyers as soon as you market your property and request that they start to put together the leasehold documentation needed by the buyers lawyers.
• The majority landlords or Management Companies in Barrow In Furness 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 as soon as you have a buyer, thus reducing delays. The average time it takes to receive management information is three weeks. It is the most frequent cause of delay in leasehold conveyancing in Barrow In Furness.
• If you have carried out any alterations to the premises would they have required Landlord’s approval? In particular have you laid down wooden flooring? Most leases in Barrow In Furness state that internal structural alterations or laying down wooden flooring calls for a licence issued by the Landlord approving such changes. If you fail to have the paperwork in place you should not communicate with the landlord without contacting your solicitor before hand.
• A minority of Barrow In Furness leases require Landlord’s consent to the sale and approval of the buyers. If this applies to your lease, it would be prudent to place the estate agents on notice to make sure that the purchasers put in hand bank and professional references. Any bank reference should make it clear that the buyer is financially capable of paying 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 actual amount of the service charge so that they can pass this information on to the buyers or their solicitors.
• If you have the benefit of shareholding in the freehold, you should make sure that you have the original share certificate. Organising a new share certificate can be a lengthy process and delays many a Barrow In Furness home move. If a reissued share is needed, do contact the company director and secretary or managing agents (where relevant) for this as soon as possible.

When it comes to leasehold conveyancing in Barrow In Furness what are the most common lease problems?

Leasehold conveyancing in Barrow In Furness is not unique. Most leases is drafted differently and legal mistakes in the legal wording can sometimes mean that certain provisions are erroneous. The following missing provisions could result in a defective lease:

• A provision to repair to or maintain parts of the premises
• A duty to insure the building
• A provision for the recovery of money spent for the benefit of another party.
• Service charge per centages that don't add up correctly leaving a shortfall

You could encounter 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. HSBC Bank, Norwich and Peterborough Building Society, and Aldermore 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 is defective they may refuse to provide security, forcing the buyer to pull out.

I acquired a 1 bedroom flat in Barrow In Furness, conveyancing was carried out half a dozen years ago. Can you shed any light on how much the price could be for a 90 year extension to my lease? Corresponding properties in Barrow In Furness with an extended lease are worth £254,000. The ground rent is £55 charged once a year. The lease finishes on 21st October 2087

You have 61 years left to run we estimate the premium for your lease extension to be between £22,800 and £26,400 plus legals.

The figure that we have given is a general guide to costs for extending a lease, but we cannot give you a more accurate figure in the absence of comprehensive investigations. Do not use this information in tribunal or court proceedings. There are no doubt additional issues that need to be taken into account and clearly you should be as accurate as possible in your negotiations. Please do not move forward placing reliance on this information without first getting professional advice.