I've found a house that appears to tick a lot of boxes, at a great figure which is making it more attractive. I have just been informed that it's a leasehold rather than freehold. I would have thought that there are issues buying a house with a leasehold title in Chorley. Conveyancing advisers have are soon to be instructed. Will they explain the issues?

The majority of houses in Chorley are freehold rather than leasehold. This is one of the situations where having a local conveyancer used to dealing with such properties who can help the conveyancing process. We note that you are buying in Chorley so you should seriously consider shopping around for a Chorley conveyancing solicitor and be sure that they have experience in advising on 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 to the property. The lease comes with conditions for example requiring the freeholder’sconsent to conduct alterations. You may also be required to pay a maintenance charge towards the maintenance of the communal areas where the house is part of an estate. Your solicitor will appraise you on the various issues.

My wife and I purchased a leasehold flat in Chorley. Conveyancing and Barclays mortgage are in place. 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 1993. The conveyancing solicitor in Chorley who previously acted has now retired.Do I pay?

First make enquiries of HMLR to be sure that the individual purporting to own the freehold is in fact the new freeholder. There is no need to instruct a Chorley conveyancing practitioner to do this as you can do this on the Land Registry website for a few pound. Rest assured that in any event, even if this is the legitimate freeholder, under the Limitation Act 1980 the limitation period for recovery of ground rent is six years.

I am looking at a couple of flats in Chorley both have approximately 50 years unexpired on the leases. Do I need to be concerned?

There are plenty of short leases in Chorley. The lease is a legal document that entitles you to use the property for a period of time. As the lease gets shorter the value of the lease deteriorate and it becomes more costly to extend the lease. 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 because mortgage lenders less inclined to grant a loan on properties of this type. Lease extension can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in this arena

Our conveyancer has advised that he intends to complete and exchange simultaneously on the disposal of our £400000 maisonette in Chorley next week. The management company has quoted £384 for Certificate of Compliance, building insurance schedule and previous years statements of service charge. Is it legal for a freeholder to charge an administration fee for a flat conveyance in Chorley?

Chorley conveyancing on leasehold apartments nine out of ten times necessitates administration charges levied by management companies :

• Answering conveyancing due diligence enquiries
• Where consent is required before sale in Chorley
• Supplying insurance information
• Deeds of covenant upon sale
• Registering of the assignment of the change of lessee after a sale

Your solicitor will have no control over the level of the charges for this information but the average costs for the information for Chorley leasehold premises is £350. For Chorley 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 obliged to supply the information.

When it comes to leasehold conveyancing in Chorley what are the most frequent lease problems?

There is nothing unique about leasehold conveyancing in Chorley. Most leases is drafted differently and legal mistakes in the legal wording can result in certain provisions are not included. For example, if your lease is missing any of the following, it could be defective:

• Repairing obligations to or maintain elements of the building
• Insurance obligations
• 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 will likely cause issues when trying to sell a property primarily because it impacts on the ability to obtain a mortgage on the property. Yorkshire Building Society, Bank of Scotland, and TSB 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 problematic they may refuse to grant the mortgage, obliging the purchaser to pull out.

Chorley Leasehold Conveyancing - Sample of Questions you should consider before buying

It is important to be aware if a new roof is being put on or some other major work is due shortly to be shared amongst the leaseholders and will dramatically impact the level of the maintenance fees or result in a specific payment. It would be wise to discover as much as possible regarding the company managing the building as they will impact your use and enjoyment of the property. Being a leasehold owner you are frequently at the mercy of the managing agents from a financial perspective and when it comes to every day issues like the cleanliness of the common parts. Ask prospective neighbours what they think of their service. Finally, be sure you know the dates that you are obliged pay the maintenance charge to the managing agents and precisely how they are spending that money. What is the yearly maintenance fee and ground rent?

Other Topics

Lease Extensions in Chorley