Frequently asked questions relating to Bishop Auckland leasehold conveyancing
I've found a house that appears to tick a lot of boxes, at a reasonable figure which is making it all the more appealing. I have just found out that it's a leasehold as opposed to freehold. I am assuming that there are particular concerns purchasing a leasehold house in Bishop Auckland. Conveyancing lawyers have are about to be instructed. Will my lawyers set out the implications of buying a leasehold house in Bishop Auckland ?
Most houses in Bishop Auckland are freehold rather than leasehold. This is one of the situations where having a local solicitor used to dealing with such properties who can help the conveyancing process. it is apparent that you are purchasing in Bishop Auckland so you should seriously consider shopping around for a Bishop Auckland conveyancing solicitor and check that they have experience in advising on leasehold houses. First you will need to check the number of years remaining. Being a leaseholder you will not be at liberty to do whatever you want to the property. The lease comes with conditions for example obtaining the freeholder’sconsent to conduct alterations. It may be necessary to pay a contribution towards the upkeep of the communal areas where the house is part of an estate. Your lawyer will appraise you on the various issues.
My wife and I purchased a leasehold flat in Bishop Auckland. Conveyancing and Godiva Mortgages Ltd mortgage are in place. I have received a letter from someone claiming to own the freehold. It included a ground rent demand for rent dating back to 1995. The conveyancing solicitor in Bishop Auckland who acted for me is not around.Any advice?
First make enquiries of HMLR to make sure that this person is indeed the registered owner of the freehold reversion. You do not need to incur the fees of a Bishop Auckland conveyancing practitioner to do this as you can do this on the Land Registry website for less than a fiver. You should note that in any event, even if this is the legitimate landlord, under the Limitation Act 1980 the limitation period for recovery of ground rent is six years.
I am attracted to a two maisonettes in Bishop Auckland both have approximately fifty years unexpired on the lease term. Will this present a problem?
There are plenty of short leases in Bishop Auckland. The lease is a right to use the property for a period of time. As the lease gets shorter the marketability of the lease deteriorate and results in it becoming more costly to acquire a lease extension. For this reason it is often a good idea to increase the term of the lease. It is often difficulties arise selling premises with a short lease because mortgage lenders may be unwilling to lend money on such properties. Lease extension can be a protracted process. We advise that you get professional help from a solicitor and surveyor with experience in this arena
I've recently bought a leasehold flat in Bishop Auckland. Do I have any liability for service charges relating to a period prior to my ownership?
Where the service charge has already been demanded from the previous owner and they have not paid you would not usually be personally liable for the arrears. However, your landlord may still be able to take action to forfeit the lease. A critical element 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).
I am employed by a reputable estate agency in Bishop Auckland where we have witnessed a few leasehold sales put at risk due to leases having less than 80 years remaining. I have been given conflicting advice from local Bishop Auckland conveyancing firms. Please can you shed some light as to whether the seller of a flat can instigate 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 commence 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 needs to be completed prior to, or at the same time as completion of the sale.
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 buyer.
Bishop Auckland Leasehold Conveyancing - Sample of Queries before Purchasing
How much is the yearly service fee and ground rent?
It would be prudent to find out as much as possible regarding the managing agents as they will either make living at the property much easier or uncomfortable. As the owner of a leasehold property you will be at the mercy of the managing agents from a financial perspective and when it comes to every day matters such as the tidiness of the common parts. You should not be shy to ask other people whether they are happy with them. In conclusion, be sure you discover the dates that you are obliged pay the service charge to the relevant party and precisely how they are spending the funds.
The best form of lease structure is if the freehold interest is owned by the leaseholders. In this arrangement the lessees benefit from being in charge if their destiny and even though a managing agent is often retained if the building is bigger than a house conversion, the managing agent acts for the leaseholders themselves.