Recently asked questions relating to Exminster leasehold conveyancing
I today plan to offer on a house that appears to meet my requirements, at a reasonable figure which is making it more attractive. I have subsequently found out that the title is leasehold as opposed to freehold. I would have thought that there are particular concerns buying a house with a leasehold title in Exminster. Conveyancing advisers have are soon to be appointed. Will my lawyers set out the implications of buying a leasehold house in Exminster ?
Most houses in Exminster are freehold and not leasehold. This is one of the situations where having a local solicitor who is familiar with the area can assist with the conveyancing process. We note that you are buying in Exminster in which case you should be shopping around for a Exminster conveyancing solicitor and check that they are used to transacting on leasehold houses. First you will need to check the unexpired lease term. Being a tenant you will not be entirely free to do whatever you want to the property. The lease comes with conditions such as obtaining the freeholder’spermission to carry out changes to the property. It may be necessary to pay a service charge towards the upkeep of the communal areas where the property is located on an estate. Your conveyancer will appraise you on the various issues.
Last month I purchased a leasehold house in Exminster. Do I have any liability for service charges for periods before completion of my purchase?
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 work for a long established estate agent office in Exminster where we have witnessed a few flat sales derailed as a result of short leases. I have been given conflicting advice from local Exminster conveyancing solicitors. Could you shed some light as to whether the vendor of a flat can commence the lease extension formalities for the buyer?
As long as 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. The benefit of this is that the buyer need not have to sit tight for 2 years for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment has to be done prior to, or simultaneously with completion of the disposal of the property.
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.
Do you have any top tips for leasehold conveyancing in Exminster with the purpose of speeding up the sale process?
- A significant proportion of the delay in leasehold conveyancing in Exminster can be avoided where you appoint lawyers as soon as you market your property and ask them to collate the leasehold information which will be required by the buyers conveyancers.
- Many landlords or managing agents in Exminster charge for providing management packs for a leasehold property. You or your lawyers should enquire as to the actual amount of the charges. The management information can be applied for as soon as you have a buyer, thus accelerating the process. The typical amount of time it takes to receive management information is three weeks. It is the most common reason for delay in leasehold conveyancing in Exminster.
Completion in due on the disposal of our £125000 flat in Exminster next week. The management company has quoted £408 for Landlord’s certificate, insurance certificate and previous years service charge statements. Is it legal for a freeholder to charge exorbitant fees for a flat conveyance in Exminster?
For the majority of leasehold sales in Exminster conveyancing will involve, questions about the management of a building inevitably needing to be answered directly by the freeholder or its agent, this includes :
- Addressing conveyancing due diligence questions
- Where consent is required before sale in Exminster
- Supplying insurance information
- Deeds of covenant upon sale
- Registering of the assignment of the change of lessee after a sale
Leasehold Conveyancing in Exminster - A selection of Questions you should ask Prior to Purchasing
Please note that where the lease has no more than 80 years it will affect the salability of the property. It is worth checking with your mortgage company that they are content with the length of the lease. Leases with less than 80 years remaining means that you will most likely have to extend the lease at some point and you need to have some idea of what this will be. For most Exminsterlease extensions you will need to own the property for 24 months in order to be legally able to extend the lease.
Are any of leasehold owners in arrears of their service charge payments?
It is important to be aware if a new roof is being installed or some other significant cost is due in the foreseeable future to be shared amongst the tenants and will dramatically increase the the service fees or result in a specific invoice.