Crabtree leasehold conveyancing: Q and A’s
Expecting to exchange soon on a leasehold property in Crabtree. Conveyancing lawyers inform me that they report fully within the next couple of days. Are there areas in the report that I should be focusing on?
Your report on title for your leasehold conveyancing in Crabtree should include some of the following:
- You should receive a copy of the lease
I today plan to offer on a house that seems to be perfect, at a great price which is making it all the more appealing. I have since found out that the title is leasehold rather than freehold. I am assuming that there are particular concerns purchasing a house with a leasehold title in Crabtree. Conveyancing lawyers have not yet been appointed. Will they explain the issues?
The majority of houses in Crabtree are freehold rather than leasehold. This is one of the situations where having a local solicitor used to dealing with such properties who can assist with the conveyancing process. We note that you are purchasing in Crabtree so you should seriously consider looking for a Crabtree conveyancing solicitor and check that they have experience in advising on leasehold houses. As a matter of priority you will need to check the unexpired lease term. As a tenant you will not be entirely free to do whatever you want to the property. The lease comes with conditions for example obtaining the freeholder’spermission to conduct alterations. You may also be required to pay a service charge towards the maintenance of the estate where the property is located on an estate. Your conveyancer should advise you fully on all the issues.
I am employed by a busy estate agent office in Crabtree where we see a few flat sales put at risk due to short leases. I have been given inconsistent advice from local Crabtree conveyancing solicitors. Can you clarify whether the vendor of a flat can start the lease extension process for the buyer?
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. This means that the proposed purchaser can avoid having to sit tight for 2 years to extend their lease. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed prior to, or at the same time as completion of the sale.
An alternative approach is to extend the lease informally by agreement with the landlord 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.
Our conveyancer has advised that he intends to complete and exchange simultaneously on our sale of a £175000 garden flat in Crabtree next Thursday . The managing agents has quoted £336 for Landlord’s certificate, building insurance schedule and 3 years service charge statements. Is the landlord entitled to charge such fees for a leasehold conveyance in Crabtree?
Crabtree conveyancing on leasehold maisonettes often requires the buyer’s solicitor submitting questions for the landlord to answer. Although the landlord is not legally bound to answer such questions most will be willing to assist. They are at liberty levy a reasonable administration fee for answering questions or supplying documentation. There is no upper cap for such fees. The average fee for the paperwork that you are referring to is £350, in some transactions it is above £800. The management information fee levied by the landlord must be accompanied by a synopsis of entitlements and obligations in relation to administration fees, otherwise the invoice is not strictly payable. In reality you have no option but to pay whatever is demanded should you wish to complete the sale of your home.
In relation to leasehold conveyancing in Crabtree what are the most frequent lease defects?
Leasehold conveyancing in Crabtree is not unique. All leases are unique and drafting errors can result in certain provisions are wrong. The following missing provisions could result in a defective lease:
- Repairing obligations to or maintain elements of the property
- A duty to insure the building
- A provision for the recovery of money spent for the benefit of another party.
- Maintenance charge proportions which don’t add up to the correct percentage
You could have 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. HSBC Bank, Chelsea Building Society, and Nottingham Building Society all have very detailed requirements when it comes to what is expected in a lease. Where a lender has been advised by their lawyers that the lease is defective they may refuse to provide security, obliging the buyer to pull out.
Crabtree Leasehold Conveyancing - Sample of Questions you should consider before Purchasing
The majority of Crabtree leasehold properties will incur a service charge for maintenance of the building invoiced by the management company. If you buy the apartment you will have to pay this liability, normally periodically throughout the year. This could differ from a couple of hundred pounds to thousands of pounds for blocks with lifts and large communal areas. In all probability there will be a ground rent for you to pay yearly, this is usually not a large sum, say around £25-£75 but you need to check it because occasionally it could be surprisingly expensive.
How is the lease structured?
Make sure you discover if there is anything that is prohibited in the lease. For instance some leases prohibit pets being permitted in in a block in Crabtree. If you love the propertyin Crabtree but your cat is not allowed to make the move with you then you have a very difficult decision.