Questions and Answers: Halifax leasehold conveyancing
I am on look out for some leasehold conveyancing in Halifax. Before diving in I would like to find out the unexpired term of the lease.
If the lease is recorded at the land registry - and most are in Halifax - then the leasehold title will always include the basic details 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.
Frank (my husband) and I may need to sub-let our Halifax 1st floor flat for a while due to taking a sabbatical. We instructed a Halifax conveyancing practice in 2001 but they have since shut and we did not think at the time seek any guidance as to whether the lease prohibits the subletting of the flat. How do we find out?
Notwithstanding that your previous Halifax conveyancing lawyer is no longer around you can review your lease to check if it allows you to sublet the property. The rule is that if the lease is silent, subletting is allowed. There may be a precondition that you must seek permission via your landlord or other appropriate person before subletting. This means that you cannot sublet without prior permission. The consent should not be unreasonably withheld. If the lease does not allow you to sublet you should ask your landlord for their consent.
I am hoping to put an offer on a small detached house that seems to be perfect, at a great figure which is making it more attractive. I have since found out that it's a leasehold as opposed to freehold. I would have thought that there are particular concerns purchasing a leasehold house in Halifax. Conveyancing advisers have not yet been instructed. Will they explain the issues?
The majority of houses in Halifax are freehold rather than leasehold. In this scenario it’s worth having a local conveyancer who is familiar with the area can assist with the conveyancing process. it is apparent that you are buying in Halifax so you should seriously consider shopping around for a Halifax conveyancing solicitor and check that they have experience in dealing with leasehold houses. First you will need to check the unexpired lease term. As a lessee you will not be entirely free to do whatever you want with the house. The lease comes with conditions such as obtaining the landlord’spermission to carry out alterations. You may also be required to pay a contribution towards the maintenance of the communal areas where the property is part of an estate. Your solicitor should advise you fully on all the issues.
I am tempted by the attractive purchase price for a two apartments in Halifax both have about fifty years unexpired on the leases. should I be concerned?
There are plenty of short leases in Halifax. The lease is a right to use the premises for a period of time. As the lease gets shorter the marketability of the lease reduces and results in it becoming more costly to acquire a lease extension. 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 companies may be reluctant to lend money on such properties. Lease enfranchisement can be a difficult process. We recommend you get professional assistance from a conveyancer and surveyor with experience in this field
What makes a Halifax lease unmortgageable?
There is nothing unique about leasehold conveyancing in Halifax. Most leases are individual and drafting errors can result in certain provisions are not included. The following missing provisions could result in a defective lease:
- Repairing obligations to or maintain parts of the building
- Insurance obligations
- 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 could encounter a problem when selling your property if you have a defective lease primarily because it impacts on the ability to obtain a mortgage on the property. Halifax, Chelsea Building Society, and Nottingham Building Society all have express requirements when it comes to what is expected in a lease. If a mortgage lender believes that the lease is problematic they may refuse to provide security, obliging the buyer to pull out.
I acquired a split level flat in Halifax, conveyancing formalities finalised 9 years ago. Can you let me have an estimate of the premium that my landlord can legally expect in return for granting a renewal of my lease? Comparable flats in Halifax with over 90 years remaining are worth £199,000. The average or mid-range amount of ground rent is £65 charged once a year. The lease ends on 21st October 2092
With only 71 years unexpired we estimate the price of your lease extension to be between £12,400 and £14,200 as well as costs.
The suggested premium range above a general guide to costs for renewing a lease, but we are not able to provide the actual costs in the absence of comprehensive due diligence. Do not use this information in tribunal or court proceedings. There may be additional issues that need to be taken into account and you obviously want to be as accurate as possible in your negotiations. Please do not move forward based on this information without first getting professional advice.