Frequently asked questions relating to Chadderton leasehold conveyancing
I am hoping to put an offer on a small detached house that seems to be perfect, at a great price which is making it more attractive. I have subsequently discovered that it's a leasehold as opposed to freehold. I would have thought that there are particular concerns purchasing a house with a leasehold title in Chadderton. Conveyancing advisers have not yet been appointed. Will my lawyers set out the risks of buying a leasehold house in Chadderton ?
The majority of houses in Chadderton are freehold and not leasehold. This is one of the situations where having a local conveyancer who is familiar with the area can help the conveyancing process. it is apparent that you are buying in Chadderton in which case you should be shopping around for a Chadderton conveyancing solicitor and be sure that they are used to advising on leasehold houses. First you will need to check the unexpired lease term. As 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 carry out changes to the property. It may be necessary to pay a service charge towards the maintenance of the estate where the house is located on an estate. Your solicitor will appraise you on the various issues.
I am employed by a busy estate agency in Chadderton where we see a few flat sales put at risk due to short leases. I have been given contradictory information from local Chadderton conveyancing firms. Could you shed some light as to whether the vendor of a flat can start the lease extension process for the buyer?
As long as the seller has been the owner 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 can avoid having to wait 2 years to extend their lease. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed before, or at the same time as 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 buyer.
What are your top tips when it comes to choosing a Chadderton conveyancing firm to deal with our lease extension?
If you are instructing a solicitor for lease extension works (regardless if they are a Chadderton conveyancing firm) it is most important that he or she should be familiar with the legislation and specialises in this area of conveyancing. We recommend that you speak with two or three firms including non Chadderton conveyancing practices prior to instructing a firm. If the firm is ALEP accredited then so much the better. Some following of questions might be of use:
- Can they put you in touch with client in Chadderton who can give a testimonial?
All being well we will complete our sale of a £150000 garden flat in Chadderton in just under a week. The landlords agents has quoted £372 for Certificate of Compliance, building insurance schedule and previous years service charge statements. Is it legal for a freeholder to charge such fees for a flat conveyance in Chadderton?
Chadderton conveyancing on leasehold maisonettes often requires the purchaser’s conveyancer sending questions for the landlord to address. Although the landlord is not legally bound to address these enquiries most will be content to do so. They are at liberty invoice a reasonable administration fee for responding to questions or supplying documentation. There is no set fee. The average fee for the information that you are referring to is over three hundred pounds, in some cases it is above £800. The administration charge demanded by the landlord must be accompanied by a synopsis of entitlements and obligations in respect of administration charges, without which the invoice is not strictly payable. In reality you have no option but to pay whatever is demanded should you wish to complete the sale of your home.
What makes a Chadderton lease unacceptable for security purposes?
Leasehold conveyancing in Chadderton is not unique. Most leases are individual and drafting errors can result in certain provisions are missing. For example, if your lease is missing any of the following, it could be defective:
- Repairing obligations to or maintain parts of the building
- Insurance obligations
- Clauses dealing with recovering service charges for expenditure on the building or common parts.
- Service charge per centages that don't add up correctly leaving a shortfall
A defective lease can cause issues when trying to sell a property as they can affect a potential buyer’s ability to obtain a mortgage. National Westminster Bank, Chelsea Building Society, and Aldermore all have very detailed conveyancing instructions when it comes to what is expected in a lease. Where a lender has been advised by their lawyers that the lease is defective they may refuse to provide security, obliging the buyer to pull out.
I inherited a leasehold flat in Chadderton, conveyancing was carried out 7 years ago. Can you give me give me an indication of the likely cost of a lease extension? Comparable flats in Chadderton with an extended lease are worth £190,000. The ground rent is £50 invoiced annually. The lease terminates on 21st October 2085
With just 64 years left to run we estimate the premium for your lease extension to range between £19,000 and £22,000 plus professional fees.
The suggested premium range above a general guide to costs for extending a lease, but we are not able to supply a more accurate figure in the absence of detailed due diligence. Do not use this information in tribunal or court proceedings. There may be additional concerns that need to be considered and you obviously want to be as accurate as possible in your negotiations. Neither should you move forward placing reliance on this information before getting professional advice.