I am on look out for some leasehold conveyancing in Folkestone. Before I set the wheels in motion I require certainty as to the unexpired term of the lease.

Assuming the lease is registered - and 99.9% are in Folkestone - then the leasehold title will always include the short particulars of the lease, namely the date; the term; and the original parties. From a conveyancing perspective such details then enable any prospective buyer and lender to confirm that any lease they are looking at is the one relevant to that title.For any other purpose, such as confirming how long the term was granted for and calculating what is left, then the register should be sufficient on it's own.

My husband and I may need to sub-let our Folkestone garden flat temporarily due to a career opportunity. We used a Folkestone conveyancing firm in 2002 but they have closed and we did not think at the time get any guidance as to whether the lease permits subletting. How do we find out?

The lease governs 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 Folkestone 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 supplying a duplicate of the tenancy agreement.

I am hoping to put an offer on a small detached house that seems to tick a lot of boxes, at a great figure which is making it all the more appealing. I have since discovered that it's a leasehold rather than freehold. I would have thought that there are particular concerns buying a leasehold house in Folkestone. Conveyancing lawyers have are soon to be appointed. Will they explain the issues?

Most houses in Folkestone are freehold rather than leasehold. This is one of the situations where having a local solicitor used to dealing with such properties who can help the conveyancing process. It is clear that you are purchasing in Folkestone in which case you should be looking for a Folkestone conveyancing solicitor and check that they have experience in dealing with leasehold houses. As a matter of priority you will need to check the unexpired lease term. As a leaseholder you will not be at liberty to do whatever you want to the property. The lease will likely included provisions for example requiring the landlord’sconsent to conduct changes to the property. You may also be required to pay a contribution towards the upkeep of the communal areas where the house is part of an estate. Your lawyer should appraise you on the various issues.

I am attracted to a couple of flats in Folkestone which have approximately forty five years unexpired on the leases. Will this present a problem?

There are no two ways about it. A leasehold flat in Folkestone is a wasting asset as a result of the reducing lease term. The closer the lease gets to zero years unexpired, the more it reduces the marketability of the property. The majority of purchasers and mortgage companies, leases with under 75 years become less and less attractive. On a more positive note, leaseholders can extend their leases by serving a Section 42 Notice. One stipulation is that they must have owned the premises 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 a residence 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 Folkestone conveyancing experts who will explain the options available to you during an initial telephone conversation free of charge. More often than not it is possible to negotiate informally with the freeholder to extend the lease They may agree to a smaller lump sum and an increase in the ground rent, but to shorter extension terms in return. 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.

When it comes to leasehold conveyancing in Folkestone what are the most common lease defects?

There is nothing unique about leasehold conveyancing in Folkestone. All leases are unique and legal mistakes in the legal wording can result in certain clauses are missing. 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 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. Yorkshire Building Society, Virgin Money, and Britannia 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 defective they may refuse to grant the mortgage, obliging the buyer to pull out.

Folkestone Conveyancing for Leasehold Flats - Sample of Questions you should ask Prior to Purchasing

You should be aware if it is no more than 80 years it will impact the marketability of the property. It is worth checking with your mortgage company that they are happy with the length of the lease. A short lease 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. Remember, in most cases you will be required to have been the owner of the residence for a couple of years before you are eligible to exercise a lease extension. Most Folkestone leasehold flats will be liable to pay a service bill for the upkeep of the block levied by the landlord. Where you purchase the property you will have to meet this amount, normally quarterly accross the year. This could vary from a few hundred pounds to thousands of pounds for buildings with lifts and large communal grounds. In all likelihood there will be a ground rent for you to pay annual, this is usually not a large figure, say around £25-£75 but you need to enquire it because on occasion it can be many hundreds of pounds. Does the lease include onerous restrictions?

Other Topics

Lease Extensions in Folkestone