Top Five Questions relating to Harlow leasehold conveyancing
Planning to complete next month on a leasehold property in Harlow. Conveyancing lawyers inform me that they are sending me a report next week. Are there areas in the report that I should be focusing on?
The report on title for your leasehold conveyancing in Harlow should include some of the following:
- The total extent of the premises. This will be the property itself but could also incorporate a loft or cellar if applicable.
I have just started marketing my 2 bed flat in Harlow.Conveyancing is yet to be initiated but I have just received a yearly service charge invoice – what should I do?
Your conveyancing lawyer is likely to suggest that you should clear the service charge 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 management companies will not acknowledge the buyer until 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 looking at a two flats in Harlow which have about 50 years remaining on the leases. Will this present a problem?
There are plenty of short leases in Harlow. The lease is a right to use the property for a prescribed time frame. As the lease gets shorter the saleability of the lease reduces and results in it becoming more costly to extend the lease. For this reason it is advisable to increase the term of the lease. It is often difficult to sell a property with a short lease as mortgage lenders may be unwilling to lend money on such properties. Lease extension can be a protracted process. We recommend you seek professional help from a conveyancer and surveyor with experience in this field
I am a negotiator for a long established estate agent office in Harlow where we have witnessed a number of flat sales derailed due to short leases. I have been given inconsistent advice from local Harlow conveyancing firms. Can you clarify whether the seller of a flat can instigate the lease extension formalities for the purchaser on completion of the sale?
As long as the seller has owned the lease 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. This means that the buyer can avoid having to sit tight for 2 years for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment has to be done prior to, or simultaneously with completion of the sale.
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 purchaser.
What are your top tips when it comes to appointing a Harlow conveyancing firm to deal with our lease extension?
When appointing a solicitor for lease extension works (regardless if they are a Harlow conveyancing firm) it is most important that he or she should be familiar with the legislation and specialises in this area of work. We recommend that you talk with two or three firms including non Harlow conveyancing practices before you instructing a firm. Where the conveyancing practice is ALEP accredited then so much the better. Some following of questions might be helpful:
- How many lease extensions has the firm carried out in Harlow in the last year?
I purchased a split level flat in Harlow, conveyancing was carried out 2008. Can you let me have an estimated range of the fair premium for a lease extension? Similar properties in Harlow with an extended lease are worth £262,000. The average or mid-range amount of ground rent is £60 invoiced every year. The lease terminates on 21st October 2100
You have 76 years unexpired the likely cost is going to span between £9,500 and £11,000 plus professional fees.
The suggested premium range above a general guide to costs for renewing a lease, but we cannot give you the actual costs in the absence of detailed due diligence. You should not use this information in tribunal or court proceedings. There may be other issues that need to be taken into account and clearly you should be as accurate as possible in your negotiations. You should not take any other action based on this information without first seeking the advice of a professional.