Experts for Leasehold Conveyancing in Horsforth

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Any conveyancing practice can theoretically deal with your leasehold conveyancing in Horsforth, your mortgage provider may not be willing to work with them if the firm are not on their list of approved solicitors for conveyancing

Horsforth leasehold conveyancing: Q and A’s

I have just appointed agents to market my basement flat in Horsforth.Conveyancing solicitors are to be appointed soon but I have just had a half-yearly service charge demand – what should I do?

The sensible thing to do is discharge 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 unless 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. Having a clear account will assist your cause and will leave you no worse off financially.

I work for a busy estate agency in Horsforth where we see a few leasehold sales jeopardised as a result of leases having less than 80 years remaining. I have received conflicting advice from local Horsforth conveyancing firms. Can you clarify whether the vendor of a flat can initiate the lease extension formalities for the buyer?

As long as the seller has owned the lease for at least 2 years it is possible, to serve a Section 42 notice to start the lease extension process and assign the benefit of the notice to the purchaser. This means that the buyer need not have to wait 2 years to extend their lease. Both sets of lawyers will agree to form of assignment. The assignment has to be done before, or simultaneously with completion of the sale.

Alternatively, it may be possible 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 purchaser.

What advice can you give us when it comes to finding a Horsforth conveyancing practice to deal with our lease extension?

If you are instructing a conveyancer for lease extension works (regardless if they are a Horsforth conveyancing practice) it is most important that they be familiar with the legislation and specialises in this area of conveyancing. We recommend that you speak with several firms including non Horsforth conveyancing practices prior to instructing a firm. Where the conveyancing practice is ALEP accredited then so much the better. Some following of questions could be of use:

  • If the firm is not ALEP accredited then what is the reason?
  • Can they put you in touch with client in Horsforth who can give a testimonial?

    • Can you provide any top tips for leasehold conveyancing in Horsforth with the intention of saving time on the sale process?

    • Much of the frustration in leasehold conveyancing in Horsforth can be bypassed if you instruct lawyers the minute you market your property and request that they start to collate the leasehold information needed by the purchasers’ lawyers.
    • Some Horsforth leases require Landlord’s consent to the sale and approval of the buyers. If this applies to your lease, it would be prudent to place the estate agents on notice to make sure that the purchasers put in hand financial (bank) and professional references. Any bank reference should make it clear that the buyer is financially capable of paying the annual 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 actual amount of the service charge so that they can pass this information on to the buyers or their solicitors.
  • If you have had conflict with your freeholder or managing agents it is essential that these are resolved prior to the flat being put on the market. The buyers and their solicitors will be reluctant to purchase a property where there is a current dispute. You may have to bite the bullet and pay any arrears of service charge or resolve the dispute prior to the buyers completing the purchase. It is therefore preferable to have any dispute settled ahead of the contract papers being issued to the buyers’ solicitors. You are still duty bound to disclose details of the dispute to the buyers, but it is better to present the dispute as over as opposed to unresolved.
  • If you have the benefit of shareholding in the freehold, you should make sure that you are holding the original share document. Organising a new share certificate can be a lengthy formality and slows down many a Horsforth conveyancing deal. Where a reissued share certificate is necessary, do contact the company officers or managing agents (where relevant) 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 by asking your conveyancers. A purchaser's lawyer will be unlikely to recommend their client to to exchange contracts if the lease term is less than 80 years. It is therefore important at an early stage that you consider whether the lease term for your property needs extending. If it does, contact your solicitors before you put your home on the market for sale.

    • When it comes to leasehold conveyancing in Horsforth what are the most frequent lease problems?

    Leasehold conveyancing in Horsforth is not unique. All leases are individual and drafting errors can result in certain provisions are not included. For example, if your lease is missing any of the following, it could be defective:

    • A provision to repair 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.
    • Maintenance charge proportions which don’t add up to the correct percentage

    You may have difficulties when selling your property if you have a defective lease primarily because it impacts on the ability to obtain a mortgage on the property. Lloyds TSB Bank, Bank of Scotland, and Bank of Ireland all have very detailed conveyancing instructions when it comes to what is expected in a lease. If a mortgage lender believes that the lease is defective they may refuse to grant the mortgage, obliging the buyer to withdraw.

    Horsforth Conveyancing for Leasehold Flats - Examples of Questions you should ask Prior to Purchasing

      Best to be warned whether changing the roof or some other significant cost is anticipated that will be shared by the leasehold owners and may well materially increase the the service charges or necessitate a one time payment. For most Horsforth leaseholds the cost for major works tend not to be wrapped into the maintenance charges, albeit that a few managing agents in Horsforth ask leaseholders to pay into a sinking fund created for the specific purpose of building a fund for major repairs or maintenance. The best form of lease arrangement is where the freehold reversion is in the ownership of the leaseholders. In this arrangement the lessees have being in charge if their destiny and although a managing agent is often employed where the building is larger than a house conversion, the managing agent is directed by the tenants.

    Other Topics

    Lease Extensions in Horsforth