Recently asked questions relating to Cross Hands leasehold conveyancing
Looking forward to sign contracts shortly on a ground floor flat in Cross Hands. Conveyancing lawyers inform me that they are sending me a report tomorrow. What should I be looking out for?
Your report on title for your leasehold conveyancing in Cross Hands should include some of the following:
- The total extent of the property. This will be the property itself but might include a roof space or basement if applicable.
Last month I purchased a leasehold property in Cross Hands. Am I liable to pay service charges relating to a period prior to completion of my purchase?
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. It is an essential part of leasehold conveyancing for your conveyancer to ensure 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).
I am employed by a long established estate agency in Cross Hands where we have witnessed a number of leasehold sales put at risk as a result of short leases. I have received conflicting advice from local Cross Hands conveyancing firms. Can you shed some light as to whether the vendor of a flat can commence the lease extension formalities for the buyer?
As long as the seller has been the owner for at least 2 years it is possible, to serve a Section 42 notice to kick-start 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 for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment has to be done prior to, or simultaneously with completion of the sale.
Alternatively, it may be possible 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 buyer.
Do you have any advice for leasehold conveyancing in Cross Hands with the intention of speeding up the sale process?
- A significant proportion of the delay in leasehold conveyancing in Cross Hands can be bypassed where you get in touch lawyers the minute you market your property and request that they start to put together the leasehold information needed by the buyers lawyers.
- If you have carried out any alterations to the residence would they have required Landlord’s consent? In particular have you installed wooden flooring? Most leases in Cross Hands state that internal structural alterations or addition of wooden flooring require a licence issued by the Landlord consenting to such alterations. Where you fail to have the approvals to hand do not communicate with the landlord without checking with your solicitor before hand.
If all goes to plan we aim to complete our sale of a £250000 apartment in Cross Hands next Wednesday . The freeholder has quoted £360 for Certificate of Compliance, building insurance schedule and 3 years service charge statements. Is it legal for a freeholder to charge exorbitant fees for a flat conveyance in Cross Hands?
Cross Hands conveyancing on leasehold flats more often than not necessitates the buyer’s conveyancer submitting enquiries for the landlord to address. Although the landlord is under no legal obligation to answer such questions the majority will be willing to do so. They are entitled charge a reasonable charge for answering enquiries or supplying documentation. There is no upper cap for such fees. The average costs for the paperwork that you are referring to is over three hundred pounds, in some situations it is in excess of £800. The administration charge levied by the landlord must be accompanied by a summary of entitlements and obligations in respect of administration fees, otherwise the invoice is not strictly payable. Reality however dictates that one has no choice but to pay whatever is demanded should you wish to exchange contracts with the buyer.
I bought a basement flat in Cross Hands, conveyancing was carried out 4 years ago. Can you shed any light on how much the price could be for a 90 year extension to my lease? Comparable properties in Cross Hands with a long lease are worth £237,000. The ground rent is £50 invoiced every year. The lease finishes on 21st October 2083
With just 59 years left to run we estimate the price of your lease extension to be between £20,900 and £24,200 as well as legals.
The figure above a general guide to costs for renewing a lease, but we are not able to supply the actual costs without more detailed due diligence. Do not use the figures in tribunal or court proceedings. There are no doubt other issues that need to be taken into account and you obviously should be as accurate as possible in your negotiations. You should not move forward based on this information before getting professional advice.