Frequently asked questions relating to Cirencester leasehold conveyancing
Estate agents have just been given the go-ahead to market my 2 bed flat in Cirencester.Conveyancing solicitors are to be appointed soon but I have just received a quarterly service charge invoice – should I leave it to the buyer to sort out?
It best that you 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 until 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 today plan to offer on a house that appears to tick a lot of boxes, at a great price which is making it more attractive. I have just been informed that the title is leasehold as opposed to freehold. I would have thought that there are particular concerns buying a house with a leasehold title in Cirencester. Conveyancing advisers have are soon to be appointed. Will they explain the issues?
The majority of houses in Cirencester are freehold rather than leasehold. In this scenario it’s worth having a local conveyancer used to dealing with such properties who can assist with the conveyancing process. It is clear that you are purchasing in Cirencester so you should seriously consider shopping around for a Cirencester conveyancing practitioner and check that they are used to transacting on leasehold houses. First you will need to check the unexpired lease term. Being a leaseholder you will not be entirely free to do whatever you want with the house. The lease comes with conditions for example obtaining the freeholder’spermission to conduct 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 conveyancer will appraise you on the various issues.
I've recently bought a leasehold property in Cirencester. Am I liable to pay service charges relating to a period prior to completion of my purchase?
In a situation where the service charge has already been demanded from the previous owner 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. A critical element 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).
Do you have any advice for leasehold conveyancing in Cirencester with the intention of saving time on the sale process?
- Much of the frustration in leasehold conveyancing in Cirencester can be avoided where you appoint lawyers the minute your agents start advertising the property and request that they start to collate the leasehold documentation which will be required by the purchasers’ lawyers.
- The majority freeholders or managing agents in Cirencester charge for providing management packs for a leasehold property. You or your lawyers should discover the actual amount of the charges. The management information can be applied for as soon as you have a buyer, thus reducing delays. The typical amount of time it takes to receive management information is three weeks. It is the most frequent reason for frustration in leasehold conveyancing in Cirencester.
We expect to complete the disposal of our £150000 apartment in Cirencester next Tuesday . The management company has quoted £348 for Landlord’s certificate, building insurance schedule and previous years service charge statements. Is it legal for a freeholder to charge exorbitant fees for a leasehold conveyance in Cirencester?
Cirencester conveyancing on leasehold apartments normally results in fees being raised by management companies :
- Completing conveyancing due diligence enquiries
- Where consent is required before sale in Cirencester
- Supplying insurance information
- Deeds of covenant upon sale
- Registering of the assignment of the change of lessee after a sale
Cirencester Conveyancing for Leasehold Flats - Sample of Questions you should consider before buying
Where a Cirencester lease has fewer than eighty years it will impact the salability of the flat. Check with your bank that they are happy with remaining years on the lease. Leases with fewer than 80 years remaining means that you will probably need a lease extension sooner rather than later and you need to have some idea of what this will be. For most Cirencesterlease extensions you will need to own the property for two years before you are eligible to exercise a lease extension.
What is the service charge and ground rent on the flat?
What is the name of the managing agents?