Hyde leasehold conveyancing: Q and A’s
Having had my offer accepted I require leasehold conveyancing in Hyde. Before I set the wheels in motion I want to be sure as to the remaining lease term.
Assuming the lease is recorded at the land registry - and most are in Hyde - then the leasehold title will always include the short particulars 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.
Planning to exchange soon on a garden flat in Hyde. Conveyancing solicitors assured me that they are sending me a report tomorrow. What should I be looking out for?
Your report on title for your leasehold conveyancing in Hyde should include some of the following:
- The physical extent of the property. This will be the property itself but could also include a loft or basement if appropriate.
Last month I purchased a leasehold flat in Hyde. Do I have any liability for service charges for periods before my ownership?
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. A critical element 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).
I work for a reputable estate agency in Hyde where we have witnessed a few leasehold sales jeopardised as a result of short leases. I have been given contradictory information from local Hyde conveyancing solicitors. Can you shed some light as to whether the vendor of a flat can initiate the lease extension process 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 kick-start the lease extension process and assign the benefit of the notice to the purchaser. This means 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 disposal of the property.
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 buyer.
Our conveyancer has advised that he intends to complete and exchange simultaneously on our sale of a £150000 apartment in Hyde next Wednesday . The management company has quoted £348 for Certificate of Compliance, insurance certificate and previous years service charge statements. Is it legal for a freeholder to charge such fees for a leasehold conveyance in Hyde?
Hyde conveyancing on leasehold maisonettes usually requires the purchaser’s solicitor sending enquiries for the landlord to address. Although the landlord is not legally bound to answer such questions most will be willing to assist. They may charge a reasonable charge for responding to enquiries or supplying documentation. There is no upper cap for such fees. The average fee for the information that you are referring to is £350, in some situations it is above £800. The management information fee levied by the landlord must be sent together with a summary of rights and obligations in respect of administration charges, without which the invoice is not strictly payable. Reality however dictates that one has no choice but to pay whatever is requested of you should you wish to complete the sale of your home.
Hyde Conveyancing for Leasehold Flats - Examples of Questions you should consider Prior to buying
The majority of Hyde leasehold properties will be liable to pay a service charge for maintenance of the building levied by the landlord. If you purchase the property you will have to meet this contribution, usually periodically during the year. This could differ from a couple of hundred pounds to thousands of pounds for bigger purpose-built blocks. In all probability there will be a ground rent to be met yearly, ordinarily this is not a large amount, say around £50-£100 but you need to enquire as sometimes it could be many hundreds of pounds.
How long is the Lease?
You will want to find out as much as you can concerning the company managing the block as they will either make your life much simpler or problematic. Being a leasehold owner you will be in the clutches of the managing agents both financially and when it comes to day to day issues such as the cleanliness of the communal areas. You should not be shy to ask prospective neighbours what they think of their service. Finally, find out the dates that you are obliged pay the service charge to the managing agents and specifically what it includes.