I’m about to sell my ground floor apartment in Cardigan.Conveyancing has not commenced but I have just had a yearly maintenance charge invoice – Do I pay up?

It best that you discharge the invoice 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 management companies 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. Having a clear account will assist your cause and will leave you no worse off financially.

I today plan to offer on a house that seems to meet my requirements, at a reasonable price which is making it all the more appealing. I have just found out that it's a leasehold rather than freehold. I am assuming that there are particular concerns buying a house with a leasehold title in Cardigan. Conveyancing solicitors have are soon to be instructed. Will my lawyers set out the risks of buying a leasehold house in Cardigan ?

Most houses in Cardigan are freehold and not leasehold. This is one of the situations where having a local conveyancer used to dealing with such properties who can help the conveyancing process. It is clear that you are buying in Cardigan so you should seriously consider shopping around for a Cardigan conveyancing solicitor and check that they have experience in transacting on leasehold houses. First you will need to check the unexpired lease term. Being a leaseholder you will not be entirely free to do whatever you want to the property. The lease comes with conditions such as obtaining the landlord’spermission to carry out changes to the property. You may also be required to pay a contribution towards the upkeep of the communal areas where the house is part of an estate. Your solicitor should report to you on the legal implications.

I work for a long established estate agent office in Cardigan where we see a few flat sales put at risk as a result of leases having less than 80 years remaining. I have received contradictory information from local Cardigan conveyancing solicitors. Could you clarify whether the owner of a flat can initiate the lease extension formalities for the buyer?

As long as 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. This means that the proposed purchaser need not have to wait 2 years for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment has to be done before, or at the same time as completion of the sale.

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.

Can you provide any advice for leasehold conveyancing in Cardigan from the perspective of expediting the sale process?

• A significant proportion of the frustration in leasehold conveyancing in Cardigan can be bypassed if you appoint lawyers the minute you market your property and request that they start to put together the leasehold information needed by the purchasers’ solicitors.
• A minority of Cardigan leases require Licence to Assign from the landlord. If this applies to your lease, you should notify your estate agents to make sure that the purchasers put in hand financial (bank) and professional references. Any bank reference will need to confirm that the buyers are 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.

All being well we will complete the sale of our £350000 maisonette in Cardigan next Tuesday . The freeholder has quoted £336 for Certificate of Compliance, building insurance schedule and previous years statements of service charge. Is the landlord entitled to charge such fees for a leasehold conveyance in Cardigan?

Cardigan conveyancing on leasehold flats normally requires the buyer’s solicitor submitting enquiries for the landlord to address. Although the landlord is under no legal obligation to address such questions most will be content to assist. They may levy a reasonable charge for responding to questions or supplying documentation. There is no set fee. The average fee for the paperwork that you are referring to is £350, in some situations it exceeds £800. The administration charge invoiced by the landlord must be accompanied by a summary of entitlements and obligations in relation to administration charges, without which the invoice is technically not due. Reality however dictates that one has no choice but to pay whatever is requested of you should you wish to sell the property.

Cardigan Conveyancing for Leasehold Flats - A selection of Queries before buying

How much is the maintenance charge and ground rent on the property? How is the lease structured? What is the name of the managing agents?

Other Topics

Lease Extensions in Cardigan