Common questions relating to Horwich leasehold conveyancing
My wife and I may need to let out our Horwich basement flat temporarily due to a new job. We used a Horwich conveyancing practice in 2002 but they have since shut and we did not think at the time get any advice as to whether the lease permits subletting. How do we find out?
The lease governs relations between the freeholder and you the leaseholder; specifically, it will indicate if subletting is banned, or permitted but only subject to certain conditions. The rule is that if the lease contains no expres ban or restriction, subletting is allowed. The majority of leases in Horwich do not contain strict prohibition on subletting – such a clause would undoubtedly devalue the property. Instead, there is usually simply a requirement that the owner notifies the freeholder, possibly supplying a copy of the tenancy agreement.
I am hoping to complete next month on a basement flat in Horwich. Conveyancing solicitors assured me that they will have a report out to me on Monday. What should I be looking out for?
The report on title for your leasehold conveyancing in Horwich should include some of the following:
- You should receive a copy of the lease
I am employed by a reputable estate agent office in Horwich where we have witnessed a few flat sales jeopardised due to leases having less than 80 years remaining. I have been given inconsistent advice from local Horwich conveyancing solicitors. Could you confirm whether the seller of a flat can initiate the lease extension process for the purchaser on completion of the sale?
As long as the seller has been the owner 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. The benefit of this is that the proposed purchaser need not have to sit tight for 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 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.
Do you have any advice for leasehold conveyancing in Horwich with the intention of speeding up the sale process?
- Much of the delay in leasehold conveyancing in Horwich can be reduced if you appoint lawyers as soon as you market your property and request that they start to put together the leasehold information needed by the buyers lawyers.
- Some Horwich leases require Licence to Assign from the landlord. If this is the case, you should place the estate agents on notice to make sure that the purchasers put in hand financial (bank) and professional references. The 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 service charge figures so that they can pass this information on to the purchasers or their lawyers.
If all goes to plan we aim to complete our sale of a £425000 garden flat in Horwich in just under a week. The freeholder has quoted £312 for Landlord’s certificate, insurance certificate and 3 years statements of service charge. Is the landlord entitled to charge an administration fee for a flat conveyance in Horwich?
Horwich conveyancing on leasehold flats ordinarily necessitates administration charges levied by managing agents :
- Completing conveyancing due diligence enquiries
- Where consent is required before sale in Horwich
- Supplying insurance information
- Deeds of covenant upon sale
- Registering of the assignment of the change of lessee after a sale
I own a studio flat in Horwich, conveyancing formalities finalised 1997. Can you let me have an estimated range of the fair premium for a lease extension? Similar properties in Horwich with over 90 years remaining are worth £198,000. The ground rent is £45 yearly. The lease ceases on 21st October 2080
With just 57 years left to run we estimate the price of your lease extension to be between £23,800 and £27,400 plus professional fees.
The suggested premium range that we have given is a general guide to costs for extending a lease, but we are not able to provide the actual costs in the absence of comprehensive investigations. Do not use this information in tribunal or court proceedings. There are no doubt other issues that need to be taken into account and clearly you should be as accurate as possible in your negotiations. Please do not move forward based on this information without first getting professional advice.