I today plan to offer on a house that appears to tick a lot of boxes, at a reasonable figure which is making it all the more appealing. I have just found out that the title is leasehold rather than freehold. I am assuming that there are particular concerns purchasing a house with a leasehold title in Gloucester. Conveyancing solicitors have are soon to be instructed. Will they explain the issues?

The majority of houses in Gloucester are freehold and not leasehold. In this scenario it’s worth having a local solicitor used to dealing with such properties who can assist with the conveyancing process. We note that you are buying in Gloucester so you should seriously consider looking for a Gloucester conveyancing practitioner and check that they are used to dealing with leasehold houses. As a matter of priority you will need to check the number of years remaining. Being a tenant you will not be at liberty to do whatever you want with the house. The lease will likely included provisions such as obtaining the freeholder’spermission to carry out changes to the property. It may be necessary to pay a service charge towards the maintenance of the communal areas where the house is located on an estate. Your solicitor should appraise you on the various issues.

I am a negotiator for a long established estate agency in Gloucester where we have witnessed a number of leasehold sales put at risk due to short leases. I have been given inconsistent advice from local Gloucester conveyancing solicitors. Please can you clarify 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 been the owner 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 proposed purchaser can avoid having to wait 2 years to extend their lease. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed before, or simultaneously with completion of the sale.

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 top tips for leasehold conveyancing in Gloucester from the perspective of expediting the sale process?

• Much of the delay in leasehold conveyancing in Gloucester can be avoided where you get in touch lawyers the minute your agents start marketing the property and request that they start to put together the leasehold documentation needed by the buyers representatives.
• The majority landlords or managing agents in Gloucester 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 on or before finding a buyer, thus reducing delays. The average time it takes to obtain the necessary information is three weeks. It is the most usual cause of frustration in leasehold conveyancing in Gloucester.

If you have carried out any alterations to the residence would they have required Landlord’s permission? Have you, for example laid down wooden flooring? Most leases in Gloucester state that internal structural changes or addition of wooden flooring calls for a licence from the Landlord acquiescing to such works. If you dont have the paperwork to hand you should not contact the landlord without checking with your solicitor in advance.

If you have the benefit of shareholding in the freehold, you should ensure that you hold the original share document. Obtaining a re-issued share certificate is often a lengthy formality and slows down many a Gloucester home move. Where a duplicate share is required, you should approach the company director and secretary or managing agents (if applicable) for this as soon as possible.

You may think that you are aware of the number of years remaining on your lease but you should verify this via your lawyers. A buyer’s lawyer will be unlikely to recommend their client to where the lease term is below 80 years. It is therefore essential at an early stage that you identify whether the lease term requires a lease extension. If it does, contact your solicitors before you put your premises on the market for sale.

Completion in due on the sale of our £400000 garden flat in Gloucester next Friday . The managing agents has quoted £300 for Certificate of Compliance, building insurance schedule and 3 years statements of service charge. Is the landlord entitled to charge exorbitant fees for a leasehold conveyance in Gloucester?

Gloucester conveyancing on leasehold apartments nine out of ten times involves administration charges raised by freeholders :

• Completing conveyancing due diligence questions
• Where consent is required before sale in Gloucester
• Copies of the building insurance and schedule
• 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 Gloucester leasehold property is £350. For Gloucester 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 answers.

Are there frequently found problems that you come across in leases for Gloucester properties?

Leasehold conveyancing in Gloucester is not unique. All leases are unique and legal mistakes in the legal wording can result in certain sections are erroneous. For example, if your lease is missing any of the following, it could be defective:

• Repairing obligations to or maintain elements of the property
• A duty to insure the building
• Clauses dealing with recovering service charges for expenditure on the building or common parts.
• Service charge per centages that don't add up correctly leaving a shortfall

You will have difficulties when selling your property if you have a defective lease as they can affect a potential buyer’s ability to obtain a mortgage. National Westminster Bank, Leeds Building Society, and Barclays Direct all have very detailed 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, forcing the purchaser to pull out.

Leasehold Conveyancing in Gloucester - Examples of Queries Prior to buying

It would be prudent to discover as much as you can concerning the company managing the building as they will either make living at the property much easier or a lot more difficult. Being a leasehold owner you are frequently in the clutches of the managing agents both financially and when it comes to practical matters such as the upkeep of the common parts. Ask other people what they think of their management. On a final note, be sure you discover the dates that the service charges are due to the relevant party and specifically what you get for your money. Most Gloucester leasehold properties will incur a service bill for maintenance of the block invoiced on behalf of the freeholder. If you buy the property you will have to pay this liability, usually periodically during the year. This can differ from a few hundred pounds to thousands of pounds for large purpose-built buildings. In all probability there will be a ground rent for you to pay yearly, this is usually not a exorbitant amount, say about £25-£75 but you should to enquire as sometimes it could be many hundreds of pounds. Are there any major works anticipated that will likely add a premium to the maintenance costs?

Other Topics

Lease Extensions in Gloucester