Recently asked questions relating to Irlam leasehold conveyancing
I am on look out for some leasehold conveyancing in Irlam. Before diving in I would like to find out the remaining lease term.
Assuming the lease is registered - and most are in Irlam - then the leasehold title will always include the basic details 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.
I've found a house that appears to meet my requirements, at a great price which is making it all the more appealing. I have since been informed that it's a leasehold as opposed to freehold. I am assuming that there are issues buying a house with a leasehold title in Irlam. Conveyancing advisers have are soon to be instructed. Will they explain the issues?
Most houses in Irlam are freehold rather than leasehold. In this scenario it’s worth having a local conveyancer who is familiar with the area can assist with the conveyancing process. We note that you are buying in Irlam in which case you should be looking for a Irlam conveyancing solicitor and check that they are used to transacting on leasehold houses. First you will need to check the number of years remaining. Being a lessee you will not be at liberty to do whatever you want to the property. The lease comes with conditions such as obtaining the freeholder’spermission to carry out changes to the property. It may be necessary to pay a contribution towards the maintenance of the estate where the house is part of an estate. Your lawyer will advise you fully on all the issues.
I am a negotiator for a long established estate agent office in Irlam where we see a few flat sales derailed as a result of leases having less than 80 years remaining. I have been given conflicting advice from local Irlam conveyancing firms. Can you shed some light as to whether the owner of a flat can instigate 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 buyer can avoid having to wait 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.
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.
Can you provide any top tips for leasehold conveyancing in Irlam with the purpose of saving time on the sale process?
- Much of the delay in leasehold conveyancing in Irlam can be bypassed if you get in touch lawyers as soon as you market your property and request that they start to put together the leasehold documentation which will be required by the purchasers’ representatives.
- In the event that you altered the property did you need the Landlord’s consent? Have you, for example laid down wooden flooring? Irlam leases often stipulate that internal structural alterations or addition of wooden flooring calls for a licence from the Landlord acquiescing to such works. If you fail to have the consents in place do not contact the landlord without contacting your lawyer before hand.
What are the common defects that you come across in leases for Irlam properties?
There is nothing unique about leasehold conveyancing in Irlam. All leases are unique and drafting errors can result in certain provisions are erroneous. For example, if your lease is missing any of the following, it could be defective:
- A provision to repair to or maintain parts of the property
- Insurance obligations
- 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
A defective lease can cause problems when trying to sell a property as they can affect a potential buyer’s ability to obtain a mortgage. Yorkshire Building Society, Virgin Money, and Bank of Ireland all have express requirements when it comes to what is expected in a lease. Where a lender has been advised by their lawyers that the lease is problematic they may refuse to grant the mortgage, obliging the buyer to withdraw.
I inherited a studio flat in Irlam, conveyancing having been completed 2002. Can you shed any light on how much the price could be for a 90 year extension to my lease? Similar properties in Irlam with a long lease are worth £200,000. The ground rent is £60 invoiced annually. The lease terminates on 21st October 2081
With just 59 years unexpired we estimate the premium for your lease extension to be between £22,800 and £26,400 as well as legals.
The figure above a general guide to costs for renewing a lease, but we are not able to advice on a more accurate figure in the absence of comprehensive due diligence. Do not use this information in tribunal or court proceedings. There may be other issues that need to be taken into account and you obviously want to be as accurate as possible in your negotiations. You should not move forward placing reliance on this information before getting professional advice.