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Questions and Answers: Durham leasehold conveyancing

I am on look out for some leasehold conveyancing in Durham. Before diving in I would like to find out the number of years remaining on the lease.

Assuming the lease is recorded at the land registry - and most are in Durham - then the leasehold title will always include the basic details of the lease, namely the date; the term; and the original parties. From a conveyancing perspective such details then enable any prospective buyer and lender to confirm that any lease they are looking at is the one relevant to that title.For any other purpose, such as confirming how long the term was granted for and calculating what is left, then the register should be sufficient on it's own.

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

Notwithstanding that your last Durham conveyancing lawyer is no longer available you can check your lease to check if you are permitted to let out the premises. The rule is that if the lease is non-specific, subletting is permitted. There may be a precondition that you are obliged to seek permission via your landlord or some other party in advance of subletting. The net result is that you cannot sublet without prior consent. Such consent should not be unreasonably refused ore delayed. If the lease does not allow you to sublet you will need to ask your landlord if they are willing to waive this restriction.

I have recently realised that I have Sixty One years remaining on my flat in Durham. I am keen to extend my lease but my landlord is absent. What options are available to me?

If you qualify, under the Leasehold Reform, Housing and Urban Development Act 1993 you can submit an application to the County Court for for permission to dispense with the service of the initial notice. This will enable the lease to be extended by the Court. However, you will be required to prove that you or your lawyers have used your best endeavours to locate the freeholder. On the whole a specialist would be helpful to carry out a search and prepare an expert document to be used as proof that the landlord is indeed missing. It is wise to seek advice from a solicitor both on investigating the landlord’s disappearance and the vesting order request to the County Court overseeing Durham.

I've recently bought a leasehold property in Durham. Do I have any liability for service charges relating to a period prior to completion of my purchase?

In a situation 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. 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).

I am a negotiator for a reputable estate agent office in Durham where we have experienced a few flat sales jeopardised due to short leases. I have been given inconsistent advice from local Durham conveyancing solicitors. Could you confirm whether the vendor of a flat can start the lease extension formalities for the purchaser on completion of the sale?

Provided that the seller has been the owner 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. This means that the buyer can avoid having 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 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 buyer.

Leasehold Conveyancing in Durham - Sample of Queries before Purchasing

    On the whole the cost for major works tend not to be wrapped into the maintenance charges, although a few managing agents in Durham obliged leaseholders to pay into a reserve fund created for the specific intention of establishing a fund for major works. Is there a share of the freehold? Plenty Durham leasehold apartments will be liable to pay a service charge for maintenance of the block levied by the management company. If you purchase the flat you will have to meet this contribution, usually periodically during the year. This can vary from several hundred pounds to thousands of pounds for buildings with lifts and large communal grounds. In all probability there will be a ground rent to be met yearly, normally this is not a exorbitant sum, say approximately £50-£100 but you should to enquire as occasionally it could be many hundreds of pounds.

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Lease Extensions in Durham