I am intending to rent out my leasehold apartment in Derby. Conveyancing solicitor who did the purchase is retired - so can't ask her. Is permission from the freeholder required?

Even though your last Derby conveyancing lawyer is no longer around you can review your lease to see if it allows you to sublet the apartment. The rule is that if the lease is silent, subletting is allowed. There may be a precondition that you are obliged to obtain permission via your landlord or other appropriate person prior to subletting. This means you not allowed to sublet in the absence of prior permission. Such consent must not not be unreasonably refused ore delayed. If your lease prohibits you from letting out the property you will need to ask your landlord for their consent.

Planning to complete next month on a studio apartment in Derby. Conveyancing lawyers inform me that they will have a report out to me tomorrow. What should I be looking out for?

Your report on title for your leasehold conveyancing in Derby should include some of the following:

• You should receive a copy of the lease

I've found a house that seems to be perfect, at a great figure 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 Derby. Conveyancing lawyers have are soon to be instructed. Will my lawyers set out the risks of buying a leasehold house in Derby ?

Most houses in Derby are freehold and not leasehold. This is one of the situations where having a local conveyancer used to dealing with such properties who can assist with the conveyancing process. It is clear that you are purchasing in Derby in which case you should be looking for a Derby conveyancing solicitor and be sure that they are used to advising on leasehold houses. As a matter of priority you will need to check the unexpired lease term. Being a tenant you will not be at liberty to do whatever you want to the property. The lease comes with conditions such as obtaining the freeholder’sconsent to carry out changes to the property. It may be necessary to pay a service charge towards the maintenance of the communal areas where the house is located on an estate. Your solicitor will advise you fully on all the issues.

I am attracted to a two maisonettes in Derby which have in the region of fifty years unexpired on the leases. Should I regard a short lease as a deal breaker?

There are no two ways about it. A leasehold flat in Derby is a deteriorating asset as a result of the shortening lease. The closer the lease gets to zero years unexpired, the more it reduces the value of the property. For most buyers and banks, leases with less than 75 years become less and less attractive. 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 a residence 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 Derby 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 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 work for a long established estate agency in Derby where we have experienced a few flat sales jeopardised as a result of leases having less than 80 years remaining. I have received conflicting advice from local Derby conveyancing firms. Can you confirm whether the seller of a flat can initiate the lease extension formalities for the purchaser on completion of the sale?

As long as the seller has owned the lease 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 proposed purchaser can avoid having to wait 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 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 purchaser.

Derby Leasehold Conveyancing - Examples of Queries Prior to buying

Its a good idea to find out as much as you can about the company managing the building as they will impact your use and enjoyment of the property. As the owner of a leasehold property you will be in the clutches of the managing agents both financially and when it comes to every day matters like the cleanliness of the communal areas. Ask other people what they think of them. In conclusion, investigate as to the dates that the service charges are due to the appropriate party and specifically how they are spending the funds. On the whole the cost for major works are not incorporated into the maintenance charges, albeit that a few managing agents in Derby require leaseholders to contribute towards a reserve fund and this is used to offset against larger repairs or maintenance. The majority of Derby leasehold flats will be liable to pay a service bill for maintenance of the block set on behalf of the management company. Where you acquire the flat you will have to pay this charge, usually in instalments accross the year. This could vary from several hundred pounds to thousands of pounds for large purpose-built blocks. There will also be a ground rent to be met annual, this is usually not a significant amount, say approximately £50-£100 but you should to enquire it because occasionally it can be prohibitively expensive.

Other Topics

Lease Extensions in Derby