Experts for Leasehold Conveyancing in Gateshead

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Any conveyancing practice can theoretically deal with your leasehold conveyancing in Gateshead, your mortgage provider may not be willing to work with them if the firm are not on their list of approved solicitors for conveyancing

Gateshead leasehold conveyancing Example Support Desk Enquiries

I am intending to sublet my leasehold apartment in Gateshead. Conveyancing solicitor who did the purchase is retired - so can't ask him. Is permission from the freeholder required?

A lease dictates relations between the freeholder and you the flat owner; specifically, it will indicate 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 allowed. Most leases in Gateshead do not contain subletting altogether – such a clause would undoubtedly devalue the flat. In most cases there is a basic requirement that the owner notifies the freeholder, possibly supplying a copy of the tenancy agreement.

I have just appointed agents to market my ground floor flat in Gateshead.Conveyancing is yet to be initiated but I have just received a quarterly service charge demand – Do I pay up?

Your conveyancing lawyer is likely to suggest that you should discharge the invoice as normal because all ground rent and service charges will be apportioned on completion, so you will be reimbursed by the buyer for the period running from after the completion date to the next payment date. Most managing agents will not acknowledge the buyer unless the service charges have been paid and are up to date so it is important for both buyer and seller for the seller to show that they are up to date. This will smooth the conveyancing process.

I am tempted by the attractive purchase price for a couple of maisonettes in Gateshead which have approximately fifty years remaining on the leases. Will this present a problem?

There are no two ways about it. A leasehold apartment in Gateshead is a wasting asset as a result of the reducing lease term. The closer the lease gets to its expiry date, the more it adversely affects the marketability of the property. For most purchasers and lenders, leases with under 75 years become less and less attractive. On a more upbeat note, leaseholders can extend their leases by serving a Section 42 Notice. One stipulation is that they must have owned the property 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 property 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 Gateshead 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.

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

When appointing a property lawyer for your lease extension (regardless if they are a Gateshead conveyancing firm) it is imperative that he or she should be familiar with the legislation and specialises in this area of work. We suggested that you make enquires with two or three firms including non Gateshead conveyancing practices prior to instructing a firm. If the firm is ALEP accredited then that’s a bonus. Some following of questions might be useful:

  • How experienced is the firm with lease extension legislation?
  • If they are not ALEP accredited then why not?

    • Do you have any advice for leasehold conveyancing in Gateshead from the point of view of saving time on the sale process?

    • Much of the delay in leasehold conveyancing in Gateshead can be avoided where you appoint lawyers as soon as you market your property and request that they start to put together the leasehold information needed by the buyers conveyancers.
    • The majority freeholders or Management Companies in Gateshead charge for supplying management packs for a leasehold premises. You or your lawyers should find out the fee that they propose to charge. 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 frequent reason for frustration in leasehold conveyancing in Gateshead.
  • If you have carried out any alterations to the residence would they have required Landlord’s approval? In particular have you laid down wooden flooring? Gateshead leases often stipulate that internal structural alterations or addition of wooden flooring calls for a licence issued by the Landlord approving such changes. Where you dont have the approvals in place you should not contact the landlord without checking with your solicitor in the first instance.
  • If you have had conflict with your freeholder or managing agents it is essential that these are resolved prior to the flat being put on the market. The buyers and their solicitors will be reluctant to purchase a property where there is an ongoing dispute. You may need to swallow your pride and pay any arrears of service charge or resolve the dispute prior to completion of the sale. It is therefore preferable to have any dispute settled ahead of the contract papers being issued to the buyers’ solicitors. You are still duty bound to disclose details of the dispute to the purchasers, but it is better to present the dispute as historic rather than ongoing.
  • If you are supposed to have a share in the freehold, you should ensure that you are holding the original share certificate. Arranging a re-issued share certificate is often a lengthy process and slows down many a Gateshead conveyancing transaction. Where a duplicate share certificate is needed, do contact the company officers or managing agents (if applicable) for this as soon as possible.

    • I invested in buying a studio flat in Gateshead, conveyancing was carried out 7 years ago. Can you work out an approximate cost of a lease extension? Similar flats in Gateshead with an extended lease are worth £188,000. The ground rent is £50 invoiced every year. The lease runs out on 21st October 2076

    With 51 years unexpired we estimate the premium for your lease extension to span between £35,200 and £40,600 plus plus your own and the landlord's "reasonable" professional fees.

    The suggested premium range above a general guide to costs for extending a lease, but we are not able to advice on a more accurate figure in the absence of detailed due diligence. Do not use the figures in tribunal or court proceedings. There may be additional concerns that need to be taken into account and clearly you want to be as accurate as possible in your negotiations. Please do not move forward based on this information before seeking the advice of a professional.

    Other Topics

    Lease Extensions in Gateshead