Sample questions relating to Gorton leasehold conveyancing
Helen (my wife) and I may need to rent out our Gorton garden flat temporarily due to taking a sabbatical. We instructed a Gorton conveyancing firm in 2001 but they have closed and we did not have the foresight to get any advice as to whether the lease allows us to sublet. How do we find out?
Some leases for properties in Gorton do contain a provision to say that subletting is only allowed with permission. The landlord is not entitled to unreasonably refuse but, in such cases, they would need to see references. Experience dictates that problems are usually caused by unsatisfactory tenants rather than owner-occupiers and for that reason you can expect the freeholder to take up the references and consider them carefully before granting consent.
I have recently realised that I have Sixty One years left on my lease in Gorton. I now wish to get lease extension but my freeholder is missing. What options are available to me?
On the basis that you qualify, under the Leasehold Reform, Housing and Urban Development Act 1993 you can submit an application to the County Court for an order to dispense with the service of the initial notice. This will enable the lease to be lengthened by the Court. You will be obliged to prove that you have used your best endeavours to locate the freeholder. For most situations a specialist would be helpful to carry out a search and to produce a report to be accepted by the court as proof that the landlord is indeed missing. It is advisable to get professional help from a solicitor both on investigating the landlord’s disappearance and the application to the County Court covering Gorton.
I am employed by a reputable estate agent office in Gorton where we have witnessed a few flat sales jeopardised as a result of short leases. I have received conflicting advice from local Gorton conveyancing solicitors. Please can you shed some light as to whether the seller of a flat can instigate the lease extension process 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 commence the lease extension process and assign the benefit of the notice to the purchaser. This means 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 prior to, or at the same time as completion of the disposal of the property.
An alternative approach is to agree the lease extension with the freeholder 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.
What are your top tips when it comes to finding a Gorton conveyancing practice to deal with our lease extension?
When appointing a property lawyer for lease extension works (regardless if they are a Gorton conveyancing firm) it is essential that they be familiar with the legislation and specialises in this area of conveyancing. We recommend that you make enquires with two or three firms including non Gorton conveyancing practices before you instructing a firm. Where the conveyancing practice is ALEP accredited then that’s a bonus. Some following of questions might be helpful:
- What volume of lease extensions have they conducted in Gorton in the last year?
- Can they put you in touch with client in Gorton who can give a testimonial?
Can you provide any advice for leasehold conveyancing in Gorton from the point of view of saving time on the sale process?
- A significant proportion of the delay in leasehold conveyancing in Gorton can be reduced where you get in touch lawyers the minute your agents start marketing the property and request that they start to collate the leasehold documentation needed by the purchasers’ lawyers.
- If you have carried out any alterations to the property would they have required Landlord’s approval? In particular have you laid down wooden flooring? Gorton leases often stipulate that internal structural changes or laying down wooden flooring require a licence issued by the Landlord consenting to such changes. If you fail to have the paperwork to hand you should not communicate with the landlord without checking with your conveyancer in the first instance.
- A minority of Gorton leases require Licence to Assign from the landlord. If this is the case, you should notify your estate agents to make sure that the purchasers obtain bank and professional references. The bank reference should make it clear that the buyer is financially capable of paying the yearly 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 service charge figures so that they can pass this information on to the purchasers or their lawyers.
- If you hold a share in a the Management Company, you should make sure that you have the original share document. Arranging a duplicate share certificate can be a time consuming process and slows down many a Gorton home move. If a reissued share is needed, you should approach the company director and secretary or managing agents (where applicable) for this at the earliest opportunity.
- You may think that you are aware of the number of years left on your lease but it would be advisable double-check by asking your lawyers. A buyer’s lawyer will not be happy to advise their client to where the lease term is under 75 years. It is therefore important at an as soon as possible that you identify whether the lease requires a lease extension. If it does, contact your solicitors before you put your property on the market for sale.
I purchased a basement flat in Gorton, conveyancing having been completed half a dozen years ago. Can you shed any light on how much the price could be for a 90 year extension to my lease? Comparable flats in Gorton with a long lease are worth £227,000. The average or mid-range amount of ground rent is £50 per annum. The lease runs out on 21st October 2080
With just 54 years unexpired we estimate the premium for your lease extension to range between £28,500 and £33,000 plus legals.
The suggested premium range that we have given is a general guide to costs for extending a lease, but we cannot give you the actual costs without more detailed due diligence. You should not use this information in tribunal or court proceedings. There are no doubt additional issues that need to be taken into account and you obviously should be as accurate as possible in your negotiations. Neither should you move forward placing reliance on this information without first getting professional advice.