Common questions relating to Duxford leasehold conveyancing
Looking forward to complete next month on a basement flat in Duxford. Conveyancing solicitors assured me that they are sending me a report within the next couple of days. What should I be looking out for?
The report on title for your leasehold conveyancing in Duxford should include some of the following:
- Are you allowed to have a pet in the flat?
I am hoping to put an offer on a small detached house that appears to meet my requirements, at a great figure which is making it all the more appealing. I have just been informed that it's a leasehold rather than freehold. I would have thought that there are particular concerns purchasing a house with a leasehold title in Duxford. Conveyancing advisers have are soon to be appointed. Will my lawyers set out the risks of buying a leasehold house in Duxford ?
The majority of houses in Duxford are freehold rather than leasehold. In this scenario it’s worth having a local conveyancer used to dealing with such properties who can help the conveyancing process. It is clear that you are buying in Duxford so you should seriously consider looking for a Duxford conveyancing practitioner and check that they have experience in advising on leasehold houses. First you will need to check the unexpired lease term. As a lessee you will not be entirely free to do whatever you want to the property. The lease will likely included provisions such as obtaining the freeholder’sconsent to conduct alterations. You may also be required to pay a service charge towards the maintenance of the communal areas where the property is located on an estate. Your lawyer should report to you on the legal implications.
I am looking at a two flats in Duxford which have approximately fifty years left on the lease term. should I be concerned?
There is no doubt about it. A leasehold apartment in Duxford is a deteriorating asset as a result of the shortening lease. The nearer the lease gets to its expiry date, the more it reduces the salability of the property. The majority of buyers and lenders, leases with under eighty 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 premises 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 Duxford 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 am employed by a reputable estate agent office in Duxford where we see a number of flat sales derailed due to short leases. I have received inconsistent advice from local Duxford conveyancing solicitors. Can you shed some light as to whether the vendor of a flat can commence the lease extension process for the buyer?
As long as the seller has owned the lease 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 buyer can avoid having to wait 2 years to extend their lease. 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 sale.
Alternatively, it may be possible to agree the lease extension with the freeholder 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.
We expect to complete the disposal of our £150000 flat in Duxford next Thursday . The management company has quoted £360 for Landlord’s certificate, building insurance schedule and previous years statements of service charge. Is it legal for a freeholder to charge exorbitant fees for a leasehold conveyance in Duxford?
For most leasehold sales in Duxford conveyancing will involve, queries regarding the management of a building inevitably needing to be answered directly by the freeholder or its agent, this includes :
- Answering pre-contract questions
- Where consent is required before sale in Duxford
- Supplying insurance information
- Deeds of covenant upon sale
- Registering of the assignment of the change of lessee after a sale
Duxford Leasehold Conveyancing - Examples of Questions you should consider before buying
Plenty Duxford leasehold apartments will have a service bill for maintenance of the block invoiced on behalf of the management company. Where you buy the property you will have to meet this amount, usually periodically accross the year. This can be anything from several hundred pounds to thousands of pounds for large purpose-built buildings. There will also be a ground rent to be met yearly, ordinarily this is not a exorbitant sum, say about £25-£75 but you need to check it because occasionally it can be prohibitively expensive.
Best to be warned whether redecorating or some other major work is due shortly to be shared by the leasehold owners and will materially impact the level of the service fees or result in a one time invoice.
You should want to discover as much as possible about the managing agents as they will affect your use and enjoyment of the property. Being a leasehold owner you are often in the clutches of the managing agents both financially and when it comes to day to day matters such as the cleanliness of the common parts. Ask prospective neighbours what they think of them. Finally, investigate as to the dates that the maintenance fees are due to the managing agents and precisely what you get for your money.