I have just appointed agents to market my 2 bed flat in Caerleon.Conveyancing lawyers have not yet been instructed but I have just received a half-yearly maintenance charge demand – what should I do?

The sensible thing to do is 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 unless 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. This will smooth the conveyancing process.

I am a negotiator for a reputable estate agency in Caerleon where we have experienced a few flat sales derailed due to leases having less than 80 years remaining. I have been given contradictory information from local Caerleon conveyancing solicitors. Please can you confirm whether the seller of a flat can commence the lease extension process 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 kick-start the lease extension process and assign the benefit of the notice to the purchaser. The benefit of this is that the buyer need not have to wait 2 years for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed prior to, or simultaneously with completion of the sale.

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 Caerleon with the aim of saving time on the sale process?

• A significant proportion of the frustration in leasehold conveyancing in Caerleon can be avoided where you appoint lawyers as soon as your agents start advertising the property and ask them to put together the leasehold documentation which will be required by the purchasers’ conveyancers.
• The majority landlords or Management Companies in Caerleon charge for supplying management packs for a leasehold premises. You or your lawyers should enquire as to the fee that they propose to charge. The management information sought on or before finding a buyer, thus accelerating the process. The typical amount of time it takes to obtain the necessary information is three weeks. It is the most common cause of delay in leasehold conveyancing in Caerleon.

In the event that you altered the property did you need the Landlord’s approval? Have you, for example installed wooden flooring? Most leases in Caerleon state that internal structural alterations or laying down wooden flooring require a licence from the Landlord consenting to such alterations. Where you fail to have the consents to hand you should not communicate with the landlord without checking with your lawyer in advance.

If you have the benefit of shareholding in the Management Company, you should ensure that you hold the original share document. Organising a re-issued share certificate is often a lengthy formality and slows down many a Caerleon conveyancing deal. Where a new share certificate is required, do contact the company director and secretary or managing agents (if relevant) for this at the earliest opportunity.

You believe that you know the number of years left on your lease but it would be wise to verify this by asking your solicitors. A buyer’s conveyancer will be unlikely to recommend their client to to exchange contracts if the remaining number of years is under 80 years. In the circumstances it is important at an as soon as possible that you identify whether the lease term requires a lease extension. If it does, contact your solicitors before you put your property on the market for sale.

All being well we will complete our sale of a £325000 maisonette in Caerleon in just under a week. The managing agents has quoted £396 for Certificate of Compliance, insurance certificate and previous years service charge statements. Is the landlord entitled to charge exorbitant fees for a flat conveyance in Caerleon?

Caerleon conveyancing on leasehold apartments normally involves administration charges levied by management companies :

• Answering conveyancing due diligence enquiries
• Where consent is required before sale in Caerleon
• Copies of the building insurance and schedule
• Deeds of covenant upon sale
• Registering of the assignment of the change of lessee after a sale

Your conveyancer will have no control over the level of the charges for this information but the average costs for the information for Caerleon leasehold premises is £350. For Caerleon conveyancing transactions it is customary for the seller to pay for these costs. The landlord or their agents are under no legal obligation to answer such questions most will be willing to do so - albeit often at exorbitant prices where the fees bear little relation to the work involved. Unfortunately there is no law that requires fixed charges for administrative tasks. Neither is there any legal time frame by which they are required to provide answers.

What makes a Caerleon lease unacceptable for security purposes?

There is nothing unique about leasehold conveyancing in Caerleon. Most leases are unique and legal mistakes in the legal wording can result in certain sections 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

A defective lease will likely cause problems when trying to sell a property primarily because it impacts on the ability to obtain a mortgage on the property. Yorkshire Building Society, Bank of Scotland, and Britannia 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 provide security, obliging the buyer to pull out.

Leasehold Conveyancing in Caerleon - A selection of Questions you should ask Prior to Purchasing

What is the service charge and ground rent on the flat? Who is in charge of the block? The prefered form of lease structure is where the freehold interest is in the ownership of the leaseholders. In this arrangement the tenants have being in charge if their destiny and even though a managing agent is often employed if the building is larger than a house conversion, the managing agent acts for the leaseholders themselves.

Other Topics

Lease Extensions in Caerleon