Common questions relating to Dockland Settlement leasehold conveyancing
Frank (my husband) and I may need to sub-let our Dockland Settlement ground floor flat temporarily due to taking a sabbatical. We instructed a Dockland Settlement conveyancing practice in 2003 but they have closed and we did not have the foresight to seek any guidance as to whether the lease permits subletting. How do we find out?
Some leases for properties in Dockland Settlement do contain a provision to say that subletting is only permitted with prior consent from the landlord. The landlord cannot unreasonably refuse but, in such cases, they would need to see references. Experience suggests that problems are usually caused by unsatisfactory tenants rather than owner-occupiers and for that reason you can expect the freeholder to take up the references and consider them carefully before granting consent.
I have just started marketing my ground floor apartment in Dockland Settlement.Conveyancing is yet to be initiated but I have just received a yearly maintenance charge demand – Do I pay up?
It best that you clear the service charge as normal because all ground rent and service charges will be apportioned on completion, so you will be reimbursed by the buyer for the period running from after the completion date to the next payment date. Most management companies will not acknowledge the buyer unless the service charges have been paid and are up to date so it is important for both buyer and seller for the seller to show that they are up to date. This will smooth the conveyancing process.
My wife and I purchased a leasehold house in Dockland Settlement. Conveyancing and Clydesdale mortgage went though with no issue. I have received a letter from someone claiming to own the freehold. Attached was a demand for arrears of ground rent dating back to 1995. The conveyancing practitioner in Dockland Settlement who acted for me is not around.What should I do?
First contact the Land Registry to be sure that this person is indeed the registered owner of the freehold reversion. It is not necessary to incur the fees of a Dockland Settlement conveyancing firm to do this as you can do this on the Land Registry website for less than a fiver. You should note that regardless, even if this is the legitimate freeholder, under the Limitation Act 1980 the limitation period for recovery of ground rent is six years.
Last month I purchased a leasehold flat in Dockland Settlement. Do I have any liability for service charges relating to a period prior to my ownership?
In a situation 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. 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 Dockland Settlement with the purpose of speeding up the sale process?
- A significant proportion of the frustration in leasehold conveyancing in Dockland Settlement can be bypassed if you appoint lawyers as soon as your agents start marketing the property and ask them to collate the leasehold documentation which will be required by the buyers lawyers.
- If you have carried out any alterations to the property would they have required Landlord’s consent? Have you, for example installed wooden flooring? Most leases in Dockland Settlement state that internal structural changes or laying down wooden flooring require a licence from the Landlord consenting to such works. If you dont have the consents to hand you should not contact the landlord without checking with your conveyancer in the first instance.
- Some Dockland Settlement leases require Licence to Assign from the landlord. If this applies to your lease, you should place the estate agents on notice to make sure that the purchasers put in hand financial (bank) and professional references. The bank reference should make it clear that the buyer is financially capable of paying the yearly service charge and the actual amount of the service charge should be quoted in the bank’s letter. You will therefore need to provide your estate agents with the actual amount of the service charge so that they can pass this information on to the purchasers or their lawyers.
- If you hold a share in a the Management Company, you should ensure that you are holding the original share certificate. Arranging a new share certificate is often a lengthy formality and frustrates many a Dockland Settlement conveyancing transaction. Where a reissued share is needed, do contact the company director and secretary or managing agents (if relevant) for this as soon as possible.
- You believe that you know the number of years remaining on your lease but it would be advisable double-check by asking your lawyers. A buyer’s conveyancer will not be happy to advise their client to where the remaining number of years is below 75 years. In the circumstances it is essential at an early stage that you identify whether the lease term for your property needs extending. If it does, contact your solicitors before you put your premises on the market for sale.
I am the proprietor of a ground floor flat in Dockland Settlement. Given that I can not reach agreement with the freeholder, can the Leasehold valuation Tribunal determine the amount due for the purchase of the freehold?
Most definitely. We are happy to put you in touch with a Dockland Settlement conveyancing firm who can help.
An example of a Lease Extension decision for a Dockland Settlement residence is 73 Walerand Road in August 2012. the result of the findings of the Tribunal led to a premium to be paid for the extended lease in respect of Flat 73 in the sum of £10,040. The premium applicable in respect of Flat 85 was £5,710. This case related to 2 flats. The the number of years remaining on the existing lease(s) was 72 years.
I invested in buying a ground floor flat in Dockland Settlement, conveyancing having been completed 1996. Can you let me have an estimated range of the fair premium for a lease extension? Similar flats in Dockland Settlement with over 90 years remaining are worth £205,000. The average or mid-range amount of ground rent is £60 invoiced annually. The lease finishes on 21st October 2101
With only 75 years unexpired we estimate the price of your lease extension to be between £8,600 and £9,800 as well as legals.
The figure that we have given is a general guide to costs for extending a lease, but we are not able to provide the actual costs in the absence of detailed investigations. You should not use this information in a Notice of Claim or as an informal offer. There may be other issues that need to be taken into account and clearly you should be as accurate as possible in your negotiations. Please do not take any other action placing reliance on this information before getting professional advice.