Chester leasehold conveyancing: Q and A’s
Having had my offer accepted I require leasehold conveyancing in Chester. Before diving in I want to be sure as to the remaining lease term.
If the lease is recorded at the land registry - and most are in Chester - then the leasehold title will always include the short particulars of the lease, namely the date; the term; and the original parties. From a conveyancing perspective such details then enable any prospective buyer and lender to confirm that any lease they are looking at is the one relevant to that title.For any other purpose, such as confirming how long the term was granted for and calculating what is left, then the register should be sufficient on it's own.
Estate agents have just been given the go-ahead to market my 2 bed flat in Chester.Conveyancing solicitors are to be appointed soon but I have just received a yearly service charge demand – should I leave it to the buyer to sort out?
The sensible thing to do is clear the service charge 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. This will smooth the conveyancing process.
I've found a house that seems to tick a lot of boxes, at a great figure which is making it all the more appealing. I have subsequently discovered that it's a leasehold as opposed to freehold. I am assuming that there are issues buying a leasehold house in Chester. Conveyancing advisers have are about to be instructed. Will they explain the issues?
The majority of houses in Chester are freehold rather than leasehold. This is one of the situations where having a local solicitor used to dealing with such properties who can help the conveyancing process. It is clear that you are buying in Chester in which case you should be shopping around for a Chester conveyancing practitioner and check that they are used to dealing with leasehold houses. First you will need to check the number of years remaining. As a tenant you will not be entirely free to do whatever you want with the house. The lease will likely included provisions such as obtaining the freeholder’spermission to carry out changes to the property. It may be necessary to pay a maintenance charge towards the upkeep of the estate where the property is located on an estate. Your conveyancer should appraise you on the various issues.
Back In 2002, I bought a leasehold house in Chester. Conveyancing and The Mortgage Works mortgage organised. A letter has just been received from someone claiming to own the reversionary interest in the property. It included a ground rent demand for rent dating back to 1991. The conveyancing practitioner in Chester who acted for me is not around.Do I pay?
First contact HMLR to be sure that the individual purporting to own the freehold is in fact the registered owner of the freehold reversion. There is no need to instruct a Chester conveyancing practitioner to do this as it can be done on-line for £3. Rest assured that regardless, even if this is the rightful freeholder, under the Limitation Act 1980 the limitation period for recovery of ground rent is six years.
When it comes to leasehold conveyancing in Chester what are the most frequent lease problems?
There is nothing unique about leasehold conveyancing in Chester. Most leases are unique and legal mistakes in the legal wording can result in certain sections are missing. The following missing provisions could result in a defective lease:
- A provision to repair to or maintain parts of the property
- A duty to insure the building
- 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
You will encounter a problem when selling your property if you have a defective lease as they can affect a potential buyer’s ability to obtain a mortgage. Yorkshire Building Society, Virgin Money, and Nottingham Building Society all have very detailed requirements when it comes to what is expected in a lease. If a mortgage lender believes that the lease is problematic they may refuse to grant the mortgage, obliging the purchaser to pull out.
Chester Conveyancing for Leasehold Flats - Sample of Queries before buying
How many of the leaseholders are in arrears for their maintenance charge payments?
What is the yearly maintenance fee and ground rent?
The majority of Chester leasehold apartments will have a service charge for the upkeep of the building invoiced on behalf of the landlord. If you buy the flat you will have to meet this contribution, normally quarterly throughout the year. This can vary from two or three hundred pounds to thousands of pounds for large purpose-built blocks. In all probability there will be a ground rent to be met yearly, normally this is not a large amount, say about £50-£100 but you need to check it because on occasion it can be many hundreds of pounds.