I am hoping to put an offer on a small detached house that seems to tick a lot of boxes, at a great price which is making it all the more appealing. I have just discovered that the title is leasehold rather than freehold. I am assuming that there are particular concerns purchasing a house with a leasehold title in Chaddesden. Conveyancing advisers have are soon to be instructed. Will they explain the issues?

The majority of houses in Chaddesden are freehold and not leasehold. This is one of the situations where having a local solicitor who is familiar with the area can help the conveyancing process. We note that you are buying in Chaddesden in which case you should be shopping around for a Chaddesden conveyancing solicitor and be sure that they are used to advising on leasehold houses. As a matter of priority you will need to check the unexpired lease term. Being a lessee you will not be entirely free to do whatever you want to the property. The lease will likely included provisions such as requiring the landlord’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 should advise you fully on all the issues.

Last month I purchased a leasehold house in Chaddesden. 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. It is an essential part of leasehold conveyancing for your conveyancer to be sure 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).

I am employed by a busy estate agent office in Chaddesden where we see a number of leasehold sales derailed as a result of short leases. I have received inconsistent advice from local Chaddesden conveyancing solicitors. Could you shed some light as to whether the vendor of a flat can initiate 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 start the lease extension process and assign the benefit of the notice to the purchaser. This means that the buyer can avoid having to sit tight for 2 years to extend their lease. 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.

What are your top tips when it comes to finding a Chaddesden conveyancing firm to carry out our lease extension conveyancing?

When appointing a solicitor for lease extension works (regardless if they are a Chaddesden conveyancing practice) it is most important that they be familiar with the legislation and specialises in this area of work. We suggested that you make enquires with several firms including non Chaddesden 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 has the firm conducted in Chaddesden in the last twenty four months?

What are the frequently found deficiencies that you encounter in leases for Chaddesden properties?

There is nothing unique about leasehold conveyancing in Chaddesden. All leases is drafted differently and drafting errors can sometimes mean that certain sections are wrong. The following missing provisions could result in a defective lease:

• A provision to repair to or maintain elements of the building
• A duty to insure the building
• Clauses dealing with recovering service charges for expenditure on the building or common parts.
• Maintenance charge proportions which don’t add up to the correct percentage

A defective lease can cause problems when trying to sell a property as they can affect a potential buyer’s ability to obtain a mortgage. Yorkshire Building Society, Leeds 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 is defective they may refuse to grant the mortgage, forcing the purchaser to withdraw.

Leasehold Conveyancing in Chaddesden - Examples of Questions you should consider before Purchasing

The majority of Chaddesden leasehold apartments will incur a service bill for maintenance of the block invoiced on behalf of the management company. If you buy the apartment you will have to meet this liability, normally quarterly accross the year. This could vary from several hundred pounds to thousands of pounds for large purpose-built buildings. There will also be a ground rent to be met annual, ordinarily this is not a exorbitant sum, say about £25-£75 but you should to enquire it because on occasion it can be surprisingly expensive. This information is useful as a) areas could cause problems in the block as the common areas may start to deteriorate if repairs remain unpaid b) if the tenants have a dispute with the running of the building you will want to have complete disclosure The best form of lease arrangement is where the freehold title is owned by the leaseholders. In this situation the leaseholders have being in charge if their destiny and even though a managing agent is often employed if it is bigger than a house conversion, the managing agent retained by the leaseholders.

Other Topics

Lease Extensions in Chaddesden