Common questions relating to Histon leasehold conveyancing
Jane (my partner) and I may need to sub-let our Histon ground floor flat for a while due to taking a sabbatical. We used a Histon conveyancing practice in 2004 but they have since shut and we did not think at the time get any guidance as to whether the lease allows us to sublet. How do we find out?
Some leases for properties in Histon do contain a provision to say that subletting is only allowed with permission. The landlord cannot 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.
Estate agents have just been given the go-ahead to market my 2 bed apartment in Histon.Conveyancing has not commenced but I have just had a yearly service charge demand – what should I do?
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 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 tempted by the attractive purchase price for a two flats in Histon both have about 50 years unexpired on the lease term. should I be concerned?
There are no two ways about it. A leasehold apartment in Histon 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 value of the property. For most buyers and mortgage companies, leases with less than eighty 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 Histon 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 any new 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.
Last month I purchased a leasehold property in Histon. Am I liable to pay service charges relating to a period prior to completion of my purchase?
Where the service charge has already been demanded from the previous lessee and they have not paid you would not usually be personally liable for the arrears. Strange as it may seem, your landlord may still be able to take action to forfeit the lease. It is an essential part of leasehold conveyancing for your conveyancer to ensure to have an up to date clear service charge receipt before completion of your purchase. If you have a mortgage this is likely to be a requirement of your lender.
If you purchase part way through an accounting year you may be liable for charges not yet demanded even if they relate to a period prior to your purchase. In such circumstances your conveyancer would normally arrange for the seller to set aside some money to cover their part of the period (usually called a service charge retention).
Our conveyancer has advised that he intends to complete and exchange simultaneously on the disposal of our £425000 garden flat in Histon in just under a week. The managing agents has quoted £300 for Landlord’s certificate, building insurance schedule and 3 years statements of service charge. Is the landlord entitled to charge an administration fee for a flat conveyance in Histon?
Histon conveyancing on leasehold maisonettes ordinarily necessitates fees being levied by managing agents :
- Completing conveyancing due diligence questions
- Where consent is required before sale in Histon
- Copies of the building insurance and schedule
- Deeds of covenant upon sale
- Registering of the assignment of the change of lessee after a sale
Histon Conveyancing for Leasehold Flats - A selection of Questions you should consider Prior to buying
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What prohibitions are contained in the Histon Lease?
If a Histon lease has fewer than eighty years it will affect the salability of the apartment. It is worth checking with your bank that they are happy with remaining years on the lease. A short lease means that you will almost definitely need a lease extension at some point and it is worth finding out what this will be. Remember, in most cases you will be be obliged to have been the owner of the property for a couple of years before you are eligible to extend the lease.
Its a good idea to discover as much as possible regarding the managing agents as they will either make life much easier or uncomfortable. Being a leasehold owner you will be at the mercy of the managing agents both financially and when it comes to every day matters like the cleanliness of the communal areas. Enquire of prospective neighbours whether they are happy with them. In conclusion, find out the dates that the service fees are due to the managing agents and specifically what you get for your money.
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