Frequently asked questions relating to Castle Bromwich leasehold conveyancing
I’m about to sell my basement flat in Castle Bromwich.Conveyancing lawyers have not yet been instructed but I have just had a half-yearly service charge demand – Do I pay up?
The sensible thing to do is clear 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 until 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.
Back In 2008, I bought a leasehold house in Castle Bromwich. Conveyancing and Barnsley Building Society mortgage went though with no issue. I have received a letter from someone claiming to own the reversionary interest in the property. Attached was a demand for arrears of ground rent dating back to 1998. The conveyancing solicitor in Castle Bromwich who previously acted has long since retired.What should I do?
First contact the Land Registry to make sure that the individual purporting to own the freehold is in fact the registered owner of the freehold reversion. It is not necessary to instruct a Castle Bromwich 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 no more than 6 years of rent can be collected.
I am tempted by the attractive purchase price for a two maisonettes in Castle Bromwich both have about fifty years remaining on the leases. Will this present a problem?
There are no two ways about it. A leasehold apartment in Castle Bromwich is a wasting asset as a result of the reducing lease term. The closer the lease gets to zero years unexpired, the more it adversely affects the value of the property. The majority of buyers and banks, leases with less than 75 years become less and less marketable. On a more positive note, leaseholders can extend their leases by serving a Section 42 Notice. One stipulation is that they must have owned the premises for two years (unlike a Section 13 notice for purchasing the freehold, when leaseholders can participate from day one of ownership). When successful, they will have the right to an extension of 90 years to the current term and ground rent is effectively reduced to zero. Before moving forward with a purchase of property with a short lease term remaining you should talk to a solicitor specialising in lease extensions and leasehold enfranchisement. We are are happy to put you in touch with Castle Bromwich conveyancing experts who will explain the options available to you during an initial telephone conversation free of charge. More often than not it is possible to negotiate informally with the freeholder to extend the lease You may find he or she is happy to negotiate informally and willing to consider your offer straight off, without having to involve anyone else. This will save you time and money and it could help you reach a lower price on the lease. You need to ensure that any new terms represent good long-term value compared with the standard benefits of the Section 42 Notice and that onerous clauses are not inserted into any redrafting of the lease.
What are your top tips when it comes to finding a Castle Bromwich conveyancing firm to carry out our lease extension conveyancing?
If you are instructing a property lawyer for your lease extension (regardless if they are a Castle Bromwich conveyancing firm) it is essential that he or she should be familiar with the legislation and specialises in this area of work. We advise that you speak with two or three firms including non Castle Bromwich conveyancing practices prior to instructing a firm. If the firm is ALEP accredited then so much the better. Some following of questions could be of use:
- How many lease extensions have they conducted in Castle Bromwich in the last year?
We expect to complete the disposal of our £475000 maisonette in Castle Bromwich on Thursday in a week. The landlords agents has quoted £324 for Landlord’s certificate, insurance certificate and 3 years service charge statements. Is the landlord entitled to charge exorbitant fees for a leasehold conveyance in Castle Bromwich?
Castle Bromwich conveyancing on leasehold flats normally requires the buyer’s solicitor submitting enquiries for the landlord to address. Although the landlord is not legally bound to answer such questions most will be content to assist. They are at liberty invoice a reasonable charge for answering enquiries or supplying documentation. There is no upper cap for such fees. The average costs for the paperwork that you are referring to is over three hundred pounds, in some cases it exceeds £800. The administration charge levied by the landlord must be sent together with a summary of rights and obligations in respect of administration fees, without which the invoice is technically not due. Reality however dictates that one has no option but to pay whatever is requested of you if you want to complete the sale of your home.
Castle Bromwich Leasehold Conveyancing - Sample of Questions you should consider before Purchasing
In the main the outlay for major works are not included within maintenance charges, albeit that a few managing agents in Castle Bromwich ask leaseholders to pay into a reserve fund created for the specific purpose of building a fund for major repairs or maintenance.
What restrictions exist in the Castle Bromwich Lease?
Plenty Castle Bromwich leasehold apartments will incur a service charge for maintenance of the building set on behalf of the landlord. Where you acquire the apartment you will have to pay this amount, normally in instalments accross the year. This could differ from a few hundred pounds to thousands of pounds for buildings with lifts and large communal grounds. There will also be a rentcharge for you to pay annual, ordinarily this is not a exorbitant amount, say approximately £50-£100 but you should to check it because occasionally it could be many hundreds of pounds.