My fiance and I may need to rent out our Chepstow garden flat for a while due to a new job. We used a Chepstow conveyancing firm in 2002 but they have since shut and we did not think at the time get any advice as to whether the lease permits subletting. How do we find out?

The lease governs the relationship between the freeholder and you the flat owner; specifically, it will indicate if subletting is prohibited, or permitted but only subject to certain conditions. The rule is that if the lease contains no expres ban or restriction, subletting is allowed. Most leases in Chepstow do not prevent strict prohibition on subletting – such a clause would adversely affect the market value the property. Instead, there is usually a basic requirement that the owner notifies the freeholder, possibly sending a duplicate of the tenancy agreement.

I've found a house that appears to tick a lot of boxes, at a reasonable figure which is making it all the more appealing. I have just discovered that it's a leasehold rather than freehold. I would have thought that there are particular concerns buying a leasehold house in Chepstow. Conveyancing lawyers have not yet been appointed. Will my lawyers set out the risks of buying a leasehold house in Chepstow ?

The majority of houses in Chepstow are freehold rather than leasehold. In this scenario it’s worth having a local conveyancer who is familiar with the area can help the conveyancing process. It is clear that you are buying in Chepstow so you should seriously consider shopping around for a Chepstow conveyancing solicitor and check that they are used to dealing with leasehold houses. First you will need to check the unexpired lease term. Being a lessee you will not be at liberty to do whatever you want to the property. The lease will likely included provisions such as requiring the freeholder’sconsent to conduct alterations. It may be necessary to pay a contribution towards the maintenance of the communal areas where the property is part of an estate. Your solicitor should advise you fully on all the issues.

I am looking at a couple of flats in Chepstow which have approximately 50 years unexpired on the lease term. Will this present a problem?

There are plenty of short leases in Chepstow. The lease is a legal document that entitles you to use the premises for a period of time. As a lease gets shorter the marketability of the lease decreases and results in it becoming more costly to acquire a lease extension. For this reason it is generally wise to increase the term of the lease. Sometimes it is difficult to sell a property with a short lease as mortgage lenders less inclined to grant a loan on such properties. Lease enfranchisement can be a difficult process. We recommend you seek professional assistance from a solicitor and surveyor with experience in this arena

I am employed by a busy estate agency in Chepstow where we have experienced a number of leasehold sales derailed as a result of short leases. I have received inconsistent advice from local Chepstow conveyancing solicitors. Can you shed some light as to whether the vendor of a flat can start the lease extension process for the purchaser on completion of the sale?

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 can avoid having to sit tight for 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 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.

Completion in due on our sale of a £475000 flat in Chepstow on Friday in a week. The management company has quoted £336 for Landlord’s certificate, insurance certificate and previous years statements of service charge. Is it legal for a freeholder to charge exorbitant fees for a flat conveyance in Chepstow?

For most leasehold sales in Chepstow conveyancing will involve, queries regarding the management of a building inevitably needing to be answered directly by the freeholder or its agent, this includes :

• Addressing conveyancing due diligence questions
• Where consent is required before sale in Chepstow
• Supplying insurance information
• 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 Chepstow leasehold premises is £350. For Chepstow 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.

Chepstow Leasehold Conveyancing - A selection of Questions you should consider before buying

How much is the maintenance charge and ground rent on the flat? It would be sensible to find out as much as you can concerning the managing agents as they will impact your use and enjoyment of the property. Being a leasehold owner you are often at the mercy of the managing agents both financially and when it comes to day to day issues like the tidiness of the communal areas. Ask other tenants whether they are happy with their service. In conclusion, find out the dates that the maintenance fees are due to the appropriate party and specifically what you get for your money. Where a Chepstow lease has no more than eighty years it will affect the marketability of the property. Check with your mortgage company that they are happy with remaining years on the lease. A short lease means that you will almost definitely require a lease extension sooner rather than later and it is worth finding out how much this would cost. Remember, in most cases you would need to own the property for two years in order to be eligible to extend the lease.

Other Topics

Lease Extensions in Chepstow