I own a leasehold flat in Easthampstead. Conveyancing and Virgin Money mortgage organised. A letter has just been received from someone saying they have taken over the reversionary interest in the property. It included a ground rent demand for rent dating back to 1994. The conveyancing practitioner in Easthampstead who previously acted has long since retired.Do I pay?

The first thing you should do is contact the Land Registry to make sure that this person is indeed the registered owner of the freehold reversion. You do not need to incur the fees of a Easthampstead conveyancing firm to do this as you can do this on the Land Registry website for a few pound. You should note that in any event, even if this is the legitimate landlord, under the Limitation Act 1980 no more than 6 years of rent can be collected.

I am tempted by the attractive purchase price for a couple of apartments in Easthampstead which have approximately forty five years left on the leases. Will this present a problem?

There are no two ways about it. A leasehold apartment in Easthampstead is a deteriorating asset as a result of the shortening lease. The nearer the lease gets to its expiry date, the more it adversely affects the value of the premises. For most purchasers and mortgage companies, leases with less than 75 years become less and less attractive. On a more upbeat 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 property 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 Easthampstead 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 You may find he or she is happy to negotiate informally and willing to consider your offer straight off, without having to involve anyone else. This will save you time and money and it could help you reach a lower price on the lease. 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 long established estate agency in Easthampstead where we have witnessed a number of leasehold sales jeopardised due to leases having less than 80 years remaining. I have received conflicting advice from local Easthampstead conveyancing firms. Can you clarify whether the seller of a flat can start the lease extension process for the purchaser on completion of the sale?

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. This means that the buyer 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 simultaneously with completion of the disposal of the property.

An alternative approach is 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.

Do you have any top tips for leasehold conveyancing in Easthampstead from the perspective of expediting the sale process?

• A significant proportion of the frustration in leasehold conveyancing in Easthampstead can be reduced if you get in touch lawyers the minute your agents start marketing the property and ask them to collate the leasehold information needed by the buyers solicitors.
• In the event that you altered the property did you need the Landlord’s approval? In particular have you laid down wooden flooring? Easthampstead leases often stipulate that internal structural alterations or laying down wooden flooring require a licence issued by the Landlord acquiescing to such works. Where you fail to have the paperwork to hand do not contact the landlord without contacting your conveyancer before hand.

What makes a Easthampstead lease unmortgageable?

Leasehold conveyancing in Easthampstead is not unique. Most leases is drafted differently and drafting errors can sometimes mean that certain provisions are wrong. The following missing provisions could result in a defective lease:

• Repairing obligations to or maintain elements of the premises
• Insurance obligations
• A provision for the recovery of money spent for the benefit of another party.
• Service charge per centages that don't add up correctly leaving a shortfall

You will have a problem when selling your property if you have a defective lease as they can affect a potential buyer’s ability to obtain a mortgage. Lloyds TSB Bank, Barnsley Building Society, and Bank of Ireland all have express requirements when it comes to what is expected in a lease. Where a lender has been advised by their lawyers that the lease is problematic they may refuse to provide security, forcing the buyer to pull out.

Easthampstead Conveyancing for Leasehold Flats - Examples of Queries before Purchasing

The best form of lease arrangement is a share of the freehold. In this situation the lessees benefit from being in charge if their destiny and even though a managing agent is usually retained if the building is larger than a house conversion, the managing agent retained by the leaseholders. Most Easthampstead leasehold properties will have a service charge for maintenance of the block invoiced by the management company. Where you buy the flat you will have to pay this charge, usually quarterly accross the year. This may vary from a couple of hundred pounds to thousands of pounds for bigger purpose-built buildings. In all probability there will be a rentcharge for you to pay annual, this is usually not a significant sum, say approximately £25-£75 but you should to check as sometimes it can be many hundreds of pounds. Where a Easthampstead lease has fewer than eighty years it will affect the value of the property. Check with your mortgage company that they are willing to lend given the lease term. Leases with less than 80 years remaining means that you will almost definitely have to extend the lease at some point and you need to have some idea of what this will be. Remember, in most cases you would be required to have been the owner of the premises for 24 months before you are eligible to carry out a lease extension.

Other Topics

Lease Extensions in Easthampstead