Common questions relating to Bishopston leasehold conveyancing
I am hoping to complete next month on a ground floor flat in Bishopston. Conveyancing solicitors assured me that they report fully next week. What should I be looking out for?
The report on title for your leasehold conveyancing in Bishopston should include some of the following:
- You should receive a copy of the lease
I am hoping to put an offer on a small detached house that seems to tick a lot of boxes, at a reasonable price which is making it all the more appealing. I have since discovered that the title is leasehold as opposed to freehold. I would have thought that there are issues buying a leasehold house in Bishopston. Conveyancing advisers have not yet been instructed. Will they explain the issues?
Most houses in Bishopston are freehold rather than leasehold. In this scenario it’s worth having a local solicitor who is familiar with the area can help the conveyancing process. It is clear that you are buying in Bishopston in which case you should be shopping around for a Bishopston conveyancing practitioner and check that they are used to transacting on leasehold houses. As a matter of priority you will need to check the unexpired lease term. As a lessee you will not be entirely free to do whatever you want with the house. The lease will likely included provisions for example requiring the landlord’spermission to carry out changes to the property. It may be necessary to pay a contribution towards the maintenance of the estate where the house is located on an estate. Your solicitor will appraise you on the various issues.
I've recently bought a leasehold property in Bishopston. 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 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. A critical element of leasehold conveyancing for your conveyancer to ensure 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).
Do you have any top tips for leasehold conveyancing in Bishopston with the intention of expediting the sale process?
- A significant proportion of the delay in leasehold conveyancing in Bishopston can be bypassed if you get in touch lawyers as soon as you market your property and ask them to collate the leasehold information needed by the purchasers’ lawyers.
- Some Bishopston 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 will need to confirm that the buyers are financially capable of paying 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 lawyers.
In relation to leasehold conveyancing in Bishopston what are the most common lease problems?
Leasehold conveyancing in Bishopston is not unique. All leases are unique and drafting errors can sometimes mean that certain sections are not included. 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 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 will 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. National Westminster Bank, Skipton Building Society, and Clydesdale all have very detailed conveyancing instructions when it comes to what is expected in a lease. If a mortgage lender believes that the lease does not cover certain provisions they may refuse to grant the mortgage, obliging the purchaser to pull out.
Bishopston Conveyancing for Leasehold Flats - Sample of Questions you should consider Prior to buying
If a Bishopston lease has fewer than 80 years it will affect the salability of the property. Check with your mortgage company that they are willing to to proceed given the lease term. A short lease means that you will probably have to extend the lease at some point and it is worth finding out what this will be. Remember, in most cases you would need to own the premises for two years in order to be entitled to extend the lease.
What is the service charge and ground rent on the apartment?
The prefered form of lease structure is a share of the freehold. In this scenario the lessees enjoy being in charge if their destiny and even though a managing agent is usually retained if it is larger than a house conversion, the managing agent employed by the leaseholders.