Helen (my wife) and I may need to rent out our Ely 1st floor flat for a while due to a career opportunity. We instructed a Ely conveyancing firm in 2003 but they have closed and we did not have the foresight to get any guidance as to whether the lease prohibits the subletting of the flat. How do we find out?

The lease dictates the relationship between the freeholder and you the leaseholder; specifically, it will say if subletting is prohibited, or permitted but only subject to certain conditions. The rule is that if the lease contains no expres ban or restriction, subletting is permitted. The majority of leases in Ely do not prevent an absolute prevention of subletting – such a clause would adversely affect the market value the property. Instead, there is usually simply a requirement that the owner notifies the freeholder, possibly sending a copy of the tenancy agreement.

Last month I purchased a leasehold flat in Ely. Am I liable to pay 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. However, your landlord may still be able to take action to forfeit the lease. A critical element of leasehold conveyancing for your conveyancer to ensure 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).

Can you provide any top tips for leasehold conveyancing in Ely from the point of view of saving time on the sale process?

• A significant proportion of the delay in leasehold conveyancing in Ely can be reduced if you get in touch lawyers the minute your agents start advertising the property and request that they start to collate the leasehold documentation needed by the purchasers’ conveyancers.
• Many landlords or Management Companies in Ely charge for supplying management packs for a leasehold homes. You or your lawyers should find out the actual amount of the charges. The management pack sought as soon as you have a buyer, thus accelerating the process. The average time it takes to receive management information is three weeks. It is the most usual cause of frustration in leasehold conveyancing in Ely.

If all goes to plan we aim to complete the sale of our £400000 garden flat in Ely on Friday in a week. The managing agents has quoted £360 for Landlord’s certificate, insurance certificate and 3 years statements of service charge. Is the landlord entitled to charge an administration fee for a leasehold conveyance in Ely?

Ely conveyancing on leasehold maisonettes often necessitates the purchaser’s conveyancer submitting questions for the landlord to answer. Although the landlord is not legally bound to address such questions the majority will be content to do so. They may charge a reasonable charge for answering questions or supplying documentation. There is no set fee. The average costs for the information that you are referring to is £350, in some transactions it exceeds £800. The administration charge required by the landlord must be accompanied by a summary of rights and obligations in respect of administration fees, otherwise the invoice is not strictly payable. Reality however dictates that one has no choice but to pay whatever is requested of you should you wish to sell the property.

What makes a Ely lease unmortgageable?

There is nothing unique about leasehold conveyancing in Ely. Most leases are unique and drafting errors can sometimes mean that certain provisions are wrong. For example, if your lease is missing any of the following, it could be defective:

• A provision to repair to or maintain parts of the premises
• Insurance obligations
• Clauses dealing with recovering service charges for expenditure on the building or common parts.
• Service charge per centages that don't add up correctly leaving a shortfall

You may 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. HSBC Bank, The Mortgage Works, and Nottingham Building Society all have express requirements when it comes to what is expected in a lease. If a mortgage lender believes that the lease is defective they may refuse to grant the mortgage, forcing the purchaser to withdraw.

Leasehold Conveyancing in Ely - Sample of Queries Prior to Purchasing

Please note that where the lease has less than 80 years it will impact the marketability of the property. Check with your lender that they are willing to lend given the lease term. Leases with less than 80 years remaining means that you will probably have to extend the lease sooner rather than later and you need to have some idea of what this will be. For most Elylease extensions you would need to own the premises for two years in order to be legally able to exercise a lease extension. This information is important as a) areas may cause problems for the building as the common areas may begin to deteriorate where services remain unpaid b) if the leaseholders have an issue with the running of the building you will need to have full disclosure In the main the cost for major works tend not to be incorporated into the service charges, albeit that some managing agents in Ely require tenants to contribute towards a sinking fund and this is used to offset against major works.

Other Topics

Lease Extensions in Ely