Clacton On Sea leasehold conveyancing: Q and A’s
I am employed by a busy estate agent office in Clacton On Sea where we have witnessed a few leasehold sales put at risk due to leases having less than 80 years remaining. I have been given inconsistent advice from local Clacton On Sea conveyancing firms. Could you shed some light as to whether the vendor of a flat can start the lease extension formalities for the purchaser on completion of the sale?
Provided that the seller has been the owner for at least 2 years it is possible, to serve a Section 42 notice to commence the lease extension process and assign the benefit of the notice to the purchaser. The benefit of this is that the buyer need not have to wait 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.
An alternative approach is 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 buyer.
Can you offer any advice when it comes to choosing a Clacton On Sea conveyancing practice to carry out our lease extension conveyancing?
If you are instructing a conveyancer for your lease extension (regardless if they are a Clacton On Sea conveyancing firm) it is imperative that he or she should be familiar with the legislation and specialises in this area of conveyancing. We recommend that you speak with several firms including non Clacton On Sea conveyancing practices before you instructing a firm. If the firm is ALEP accredited then that’s a bonus. Some following of questions could be useful:
- If they are not ALEP accredited then what is the reason?
Can you provide any top tips for leasehold conveyancing in Clacton On Sea from the perspective of expediting the sale process?
- A significant proportion of the frustration in leasehold conveyancing in Clacton On Sea can be bypassed if you appoint lawyers as soon as your agents start marketing the property and ask them to collate the leasehold information needed by the purchasers’ solicitors.
- Many landlords or Management Companies in Clacton On Sea levy fees for providing management packs for a leasehold premises. You or your lawyers should enquire as to the actual amount of the charges. The management pack sought as soon as you have a buyer, thus reducing delays. The average time it takes to receive management information is three weeks. It is the most frequent cause of delay in leasehold conveyancing in Clacton On Sea.
If all goes to plan we aim to complete our sale of a £125000 apartment in Clacton On Sea in seven days. The management company has quoted £300 for Landlord’s certificate, insurance certificate and previous years statements of service charge. Is the landlord entitled to charge exorbitant fees for a leasehold conveyance in Clacton On Sea?
Clacton On Sea conveyancing on leasehold flats usually involves the purchaser’s solicitor sending enquiries for the landlord to answer. Although the landlord is under no legal obligation to answer these enquiries most will be content to assist. They are at liberty invoice a reasonable administration fee for responding to questions or supplying documentation. There is no upper cap for such fees. The average costs for the information that you are referring to is £350, in some situations it is in excess of £800. The administration charge invoiced by the landlord must be accompanied by a summary of entitlements and obligations in respect of administration charges, without which the invoice is technically not due. Reality however dictates that you have little option but to pay whatever is demanded should you wish to complete the sale of your home.
What are the common problems that you witness in leases for Clacton On Sea properties?
Leasehold conveyancing in Clacton On Sea is not unique. Most leases are unique and legal mistakes in the legal wording can result in certain sections are not included. For example, if your lease is missing any of the following, it could be defective:
- Repairing obligations 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.
- Maintenance charge proportions which don’t add up to the correct percentage
You could have difficulties when selling your property if you have a defective lease primarily because it impacts on the ability to obtain a mortgage on the property. Yorkshire Building Society, Chelsea Building Society, and Britannia all have very detailed conveyancing instructions when it comes to what is expected in a lease. Where a lender has been advised by their lawyers that the lease is problematic they may refuse to grant the mortgage, obliging the purchaser to withdraw.
I bought a garden flat in Clacton On Sea, conveyancing formalities finalised in 2001. How much will my lease extension cost? Similar flats in Clacton On Sea with an extended lease are worth £217,000. The ground rent is £60 yearly. The lease runs out on 21st October 2081
With just 60 years remaining on your lease the likely cost is going to be between £22,800 and £26,400 as well as costs.
The suggested premium range above a general guide to costs for renewing a lease, but we cannot give you a more accurate figure without more detailed investigations. Do not use the figures in tribunal or court proceedings. There may be additional concerns that need to be taken into account and you obviously should be as accurate as possible in your negotiations. Neither should you take any other action based on this information before getting professional advice.