I am tempted by the attractive purchase price for a two apartments in Fairwater which have in the region of fifty years remaining on the lease term. Do I need to be concerned?

There are plenty of short leases in Fairwater. The lease is a right to use the premises for a prescribed time frame. As the lease gets shorter the value of the lease reduces and results in it becoming more costly to extend the lease. This is why it is often a good idea to increase the term of the lease. It is often difficulties arise selling premises with a short lease because mortgage lenders may be reluctant to lend money on properties of this type. Lease extension can be a difficult process. We recommend you seek professional assistance from a conveyancer and surveyor with experience in this arena

I am a negotiator for a reputable estate agent office in Fairwater where we have witnessed a number of flat sales put at risk as a result of short leases. I have received inconsistent advice from local Fairwater conveyancing firms. Could you clarify whether the seller of a flat can start the lease extension formalities for the buyer?

Provided that 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 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 before, or at the same time as completion of the sale.

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 purchaser.

What advice can you give us when it comes to finding a Fairwater conveyancing firm to carry out our lease extension conveyancing?

When appointing a solicitor for lease extension works (regardless if they are a Fairwater conveyancing firm) it is most important that he or she should be familiar with the legislation and specialises in this area of conveyancing. We suggested that you make enquires with several firms including non Fairwater conveyancing practices before you instructing a firm. If the firm is ALEP accredited then so much the better. Some following of questions might be useful:

• How experienced is the firm with lease extension legislation?

Completion in due on our sale of a £375000 flat in Fairwater in just under a week. The freeholder has quoted £300 for Certificate of Compliance, insurance certificate and previous years statements of service charge. Is the landlord entitled to charge such fees for a flat conveyance in Fairwater?

Fairwater conveyancing on leasehold apartments often involves the buyer’s lawyer sending enquiries for the landlord to address. Although the landlord is not legally bound to address these enquiries most will be content to do so. They are entitled charge a reasonable administration fee for answering enquiries or supplying documentation. There is no set fee. The average fee for the paperwork that you are referring to is over three hundred pounds, in some cases it is in excess of £800. The management information fee demanded by the landlord must be accompanied by a summary of rights and obligations in respect of administration charges, otherwise the invoice is not strictly payable. Reality however dictates that one has no option but to pay whatever is requested of you if you want to sell the property.

Are there common defects that you encounter in leases for Fairwater properties?

There is nothing unique about leasehold conveyancing in Fairwater. Most leases are unique and legal mistakes in the legal wording can sometimes mean that certain sections are not included. The following missing provisions could result in a defective lease:

• A provision to repair to or maintain parts of the building
• 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 may encounter difficulties when selling your property if you have a defective lease primarily because it impacts on the ability to obtain a mortgage on the property. Birmingham Midshires, Bank of Scotland, and Alliance & Leicester all have express conveyancing instructions when it comes to what is expected in a lease. Where a lender has been advised by their lawyers that the lease does not cover certain provisions they may refuse to grant the mortgage, obliging the buyer to pull out.

Fairwater Leasehold Conveyancing - Sample of Questions you should consider Prior to buying

Most Fairwater leasehold flats will be liable to pay a service bill for the upkeep of the block levied on behalf of the freeholder. Where you acquire the property you will have to meet this contribution, normally quarterly throughout the year. This could be anything from two or three hundred pounds to thousands of pounds for large purpose-built blocks. There will also be a rentcharge to be met yearly, normally this is not a significant figure, say about £25-£75 but you need to enquire it because on occasion it could be many hundreds of pounds. How many of the leaseholders are in arrears for their maintenance charge payments? The prefered form of lease arrangement is a share of the freehold. In this situation the lessees enjoy being in charge if their destiny and although a managing agent is often retained if it is larger than a house conversion, the managing agent acts for the leaseholders themselves.

Other Topics

Lease Extensions in Fairwater