Looking forward to exchange soon on a studio apartment in Deganwy. Conveyancing lawyers assured me that they report fully next week. Are there areas in the report that I should be focusing on?

The report on title for your leasehold conveyancing in Deganwy should include some of the following:

• You should be sent a copy of the lease

I am tempted by the attractive purchase price for a couple of flats in Deganwy which have approximately 50 years remaining on the leases. Will this present a problem?

There are no two ways about it. A leasehold apartment in Deganwy is a wasting asset as a result of the shortening lease. The closer the lease gets to zero years unexpired, the more it reduces the marketability of the property. For most purchasers and banks, 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 premises 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 Deganwy conveyancing experts who will explain the options available to you during an initial telephone conversation free of charge. A more straightforward and quicker method of extending would be to contact your landlord directly and sound him out on the prospect of extending 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 the agreed 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 am employed by a reputable estate agency in Deganwy where we see a few leasehold sales jeopardised due to short leases. I have received contradictory information from local Deganwy conveyancing firms. Can you confirm whether the seller of a flat can instigate 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. The benefit of this is that the proposed purchaser need not have to wait 2 years for a lease extension. 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 disposal of the property.

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.

What are your top tips when it comes to choosing a Deganwy conveyancing firm to carry out our lease extension conveyancing?

When appointing a property lawyer for your lease extension (regardless if they are a Deganwy conveyancing firm) it is imperative that he or she should be familiar with the legislation and specialises in this area of work. We suggested that you make enquires with several firms including non Deganwy conveyancing practices before you instructing a firm. If the firm is ALEP accredited then so much the better. Some following of questions could be useful:

• Can they put you in touch with client in Deganwy who can give a testimonial?

Our conveyancer has advised that he intends to complete and exchange simultaneously on the sale of our £350000 garden flat in Deganwy in just under a week. The management company has quoted £372 for Certificate of Compliance, insurance certificate and 3 years statements of service charge. Is the landlord entitled to charge an administration fee for a flat conveyance in Deganwy?

Deganwy conveyancing on leasehold flats normally involves the purchaser’s lawyer submitting questions for the landlord to address. Although the landlord is under no legal obligation to respond to these enquiries most will be willing to do so. They are entitled invoice a reasonable charge for answering questions or supplying documentation. There is no set fee. The average fee for the information that you are referring to is over three hundred pounds, in some cases it exceeds £800. The administration charge invoiced by the landlord must be accompanied by a summary of rights and obligations in respect of administration charges, without which the invoice is technically not due. Reality however dictates that one has no choice but to pay whatever is requested of you should you wish to sell the property.

Deganwy Conveyancing for Leasehold Flats - Sample of Questions you should consider Prior to Purchasing

It is important to be aware whether changing the roof or some other significant cost is due in the foreseeable future that will be shared between the leaseholders and could well materially increase the the service fees or require a specific payment. Are any of leasehold owners in dispute over their service charge payments? Please note if it is less than eighty years it will have adverse implications on the salability of the flat. Check with your bank that they are content with remaining years on the lease. A short lease means that you will almost definitely have to extend the lease sooner rather than later and it is worth finding out how much this would cost. For most Deganwylease extensions you would be be obliged to have been the owner of the premises for 24 months before you are legally able to exercise a lease extension.

Other Topics

Lease Extensions in Deganwy