My wife and I purchased a leasehold flat in Falmouth. Conveyancing and HSBC Bank mortgage went though with no issue. 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 1993. The conveyancing solicitor in Falmouth who previously acted has long since retired.Any advice?

The first thing you should do is make enquiries of HMLR to be sure that the individual purporting to own the freehold is indeed the new freeholder. You do not need to incur the fees of a Falmouth conveyancing practitioner to do this as you can do this on the Land Registry website for a few pound. Rest assured that regardless, even if this is the rightful 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 Falmouth both have in the region of fifty years unexpired on the lease term. Will this present a problem?

There are plenty of short leases in Falmouth. The lease is a right to use the premises for a period of time. As the lease shortens the value of the lease deteriorate and results in it becoming more expensive to extend the lease. This is why it is often a good idea to increase the term of the lease. More often than not it is difficulties arise selling premises with a short lease as mortgage lenders less inclined to grant a loan on properties of this type. Lease extension can be a difficult process. We advise that you seek professional help from a solicitor and surveyor with experience in this arena

I work for a long established estate agency in Falmouth where we see a few leasehold sales jeopardised as a result of short leases. I have been given contradictory information from local Falmouth conveyancing firms. Could you shed some light as to whether the owner of a flat can commence the lease extension formalities for the purchaser on completion of the sale?

As long as the seller has owned the lease for at least 2 years it is possible, to serve a Section 42 notice to 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 to extend their lease. Both sets of lawyers will agree to form of assignment. The assignment has to be done before, or simultaneously with completion of the disposal of the property.

An alternative approach is 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 buyer.

Can you provide any advice for leasehold conveyancing in Falmouth with the purpose of expediting the sale process?

• Much of the frustration in leasehold conveyancing in Falmouth can be bypassed where you get in touch lawyers the minute your agents start marketing the property and ask them to collate the leasehold information which will be required by the buyers representatives.
• The majority freeholders or managing agents in Falmouth levy fees for supplying management packs for a leasehold property. You or your lawyers should find out the actual amount of the charges. The management information can be applied for on or before finding 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 frustration in leasehold conveyancing in Falmouth.
• If you have carried out any alterations to the property would they have required Landlord’s permission? In particular have you laid down wooden flooring? Falmouth leases often stipulate that internal structural alterations or installing wooden flooring necessitate a licence from the Landlord acquiescing to such alterations. Should you fail to have the approvals in place you should not communicate with the landlord without contacting your lawyer first.
• A minority of Falmouth leases require Landlord’s consent to the sale and approval of the buyers. If this is the case, you should notify your estate agents to make sure that the purchasers put in hand bank and professional references. Any bank reference will need to confirm that the buyers are able to meet the annual service charge and the actual amount of the service charge should be quoted in the bank’s letter. You will therefore need to provide your estate agents with the actual amount of the service charge so that they can pass this information on to the buyers or their lawyers.
• If you are supposed to have a share in the freehold, you should make sure that you are holding the original share document. Organising a replacement share certificate can be a lengthy process and slows down many a Falmouth conveyancing deal. Where a new share is necessary, do contact the company officers or managing agents (if applicable) for this sooner rather than later.

All being well we will complete the disposal of our £ 475000 garden flat in Falmouth in just under a week. The landlords agents has quoted £<Macro 'feeRangeWithVAT'> for Landlord’s certificate, building insurance schedule and 3 years service charge statements. Is the landlord entitled to charge exorbitant fees for a leasehold conveyance in Falmouth?

Falmouth conveyancing on leasehold flats normally results in fees being raised by freeholders :

• Answering pre-contract questions
• Where consent is required before sale in Falmouth
• Supplying insurance information
• Deeds of covenant upon sale
• Registering of the assignment of the change of lessee after a sale

Your conveyancer will have no control over the level of the charges for this information but the average costs for the information for Falmouth leasehold property is £350. For Falmouth conveyancing transactions it is customary for the seller to pay for these costs. The landlord or their agents are under no legal obligation to answer such questions most will be willing to do so - albeit often at exorbitant prices where the fees bear little relation to the work involved. Unfortunately there is no law that requires fixed charges for administrative tasks. Neither is there any legal time frame by which they are obliged to supply the information.

Falmouth Conveyancing for Leasehold Flats - Sample of Queries Prior to Purchasing

In the main the outlay for major works tend not to be wrapped into the maintenance charges, albeit that a few managing agents in Falmouth obliged leasehold owners to contribute towards a sinking fund created for the specific purpose of building a fund for major repairs or maintenance. Its a good idea to discover as much as possible about the company managing the block as they can either make life much easier or uncomfortable. As the proprietor of a leasehold property you are frequently in the clutches of the managing agents from a financial perspective and when it comes to every day issues like the upkeep of the common parts. You should not be shy to ask prospective neighbours what they think of their management. Finally, investigate as to the dates that the service charges are due to the managing agents and precisely how they are spending that money. Make sure you find out if there are any onerous restrictions in the lease. For instance it is very common in Falmouth leases that pets are not allowed in certain buildings in Falmouth. If you love the flatin Falmouth but your dog can’t move with you then you will be presented with a hard determination.