Sample questions relating to Darley Abbey leasehold conveyancing
Planning to exchange soon on a basement flat in Darley Abbey. Conveyancing solicitors have said that they are sending me a report tomorrow. Are there areas in the report that I should be focusing on?
Your report on title for your leasehold conveyancing in Darley Abbey should include some of the following:
- You should be sent a copy of the lease
Back In 2003, I bought a leasehold flat in Darley Abbey. Conveyancing and Halifax mortgage are in place. A letter has just been received from someone saying they have taken over the reversionary interest in the property. Attached was a demand for arrears of ground rent dating back to 1997. The conveyancing practitioner in Darley Abbey who previously acted has now retired.Do I pay?
First make enquiries of HMLR to make sure that this person is in fact the new freeholder. You do not need to incur the fees of a Darley Abbey conveyancing solicitor to do this as it can be done on-line for less than a fiver. You should note that regardless, even if this is the rightful freeholder, under the Limitation Act 1980 the limitation period for recovery of ground rent is six years.
I am looking at a two maisonettes in Darley Abbey both have in the region of fifty years unexpired on the lease term. Should I regard a short lease as a deal breaker?
There are no two ways about it. A leasehold apartment in Darley Abbey is a deteriorating asset as a result of the reducing lease term. The closer the lease gets to its expiry date, the more it adversely affects the value of the premises. The majority of purchasers and mortgage companies, leases with under 75 years become less and less marketable. On a more positive note, leaseholders can extend their leases by serving a Section 42 Notice. One stipulation is that they must have owned the property for two years (unlike a Section 13 notice for purchasing the freehold, when leaseholders can participate from day one of ownership). When successful, they will have the right to an extension of 90 years to the current term and ground rent is effectively reduced to zero. Before moving forward with a purchase of property with a short lease term remaining you should talk to a solicitor specialising in lease extensions and leasehold enfranchisement. We are are happy to put you in touch with Darley Abbey conveyancing experts who will explain the options available to you during an initial telephone conversation free of charge. More often than not it is possible to negotiate informally with the freeholder to extend the lease They may agree to a smaller lump sum and an increase in the ground rent, but to shorter extension terms in return. You need to ensure that any new terms represent good long-term value compared with the standard benefits of the Section 42 Notice and that onerous clauses are not inserted into any redrafting of the lease.
I've recently bought a leasehold house in Darley Abbey. Do I have any liability for service charges relating to a period prior to my ownership?
Where the service charge has already been demanded from the previous lessee and they have not paid you would not usually be personally liable for the arrears. However, 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 top tips for leasehold conveyancing in Darley Abbey with the intention of saving time on the sale process?
- Much of the frustration in leasehold conveyancing in Darley Abbey can be bypassed if you instruct lawyers as soon as you market your property and ask them to put together the leasehold information which will be required by the purchasers’ solicitors.
- The majority landlords or Management Companies in Darley Abbey charge for providing management packs for a leasehold homes. You or your lawyers should discover the fee that they propose to charge. The management pack can be applied for as soon as you have a buyer, thus accelerating the process. The average time it takes to receive management information is three weeks. It is the most usual cause of delay in leasehold conveyancing in Darley Abbey.
Darley Abbey Leasehold Conveyancing - A selection of Queries Prior to Purchasing
Is the freehold reversion owned collectively by the leaseholders?
Are any of leasehold owners in arrears of their service charge liability?
Most Darley Abbey leasehold flats will be liable to pay a service charge for the upkeep of the block levied on behalf of the landlord. If you acquire the flat you will have to pay this charge, normally periodically throughout the year. This may be anything from several hundred pounds to thousands of pounds for buildings with lifts and large communal grounds. In all likelihood there will be a rentcharge for you to pay yearly, this is usually not a significant sum, say around £25-£75 but you need to enquire it because occasionally it can be many hundreds of pounds.