I today plan to offer on a house that appears to meet my requirements, at a great figure which is making it all the more appealing. I have subsequently discovered that the title is leasehold as opposed to freehold. I would have thought that there are issues buying a house with a leasehold title in Ivybridge. Conveyancing advisers have not yet been instructed. Will they explain the issues?

The majority of houses in Ivybridge 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 Ivybridge in which case you should be shopping around for a Ivybridge conveyancing solicitor and check that they have experience in dealing with leasehold houses. As a matter of priority you will need to check the unexpired lease term. As a tenant you will not be entirely free to do whatever you want with the house. The lease comes with conditions such as obtaining the freeholder’spermission to carry out changes to the property. You may also be required to pay a service charge towards the upkeep of the communal areas where the house is part of an estate. Your lawyer will advise you fully on all the issues.

I am tempted by the attractive purchase price for a two flats in Ivybridge which have approximately fifty years unexpired on the lease term. Do I need to be concerned?

A lease is a right to use the property for a prescribed time frame. As a lease gets shorter the saleability of the lease deteriorate and it becomes more costly to acquire a lease extension. This is why it is often a good idea to increase the term of the lease. Sometimes it is difficulties arise selling premises with a short lease as mortgage companies may be unwilling to lend money on properties of this type. Lease extension can be a difficult process. We recommend you seek professional help from a conveyancer and surveyor with experience in this arena

I am employed by a long established estate agency in Ivybridge where we have witnessed a few flat sales derailed due to short leases. I have been given inconsistent advice from local Ivybridge conveyancing solicitors. Can you shed some light as to whether the owner of a flat can commence the lease extension formalities for the buyer?

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. This means that the proposed purchaser need not have to wait 2 years for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment has to be done prior to, 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.

All being well we will complete the disposal of our £375000 garden flat in Ivybridge next Tuesday . The freeholder has quoted £396 for Certificate of Compliance, insurance certificate and 3 years statements of service charge. Is the landlord entitled to charge such fees for a flat conveyance in Ivybridge?

Ivybridge conveyancing on leasehold maisonettes normally involves the purchaser’s lawyer submitting enquiries for the landlord to address. Although the landlord is under no legal obligation to answer such questions most will be willing to do so. They may charge a reasonable administration fee for answering questions or supplying documentation. There is no set fee. The average costs for the paperwork that you are referring to is £350, in some transactions it is above £800. The administration charge required by the landlord must be sent together with a summary of entitlements and obligations in respect of administration fees, without which the charge is technically not due. Reality however dictates that one has no option but to pay whatever is demanded should you wish to complete the sale of your home.

What are the frequently found problems that you witness in leases for Ivybridge properties?

There is nothing unique about leasehold conveyancing in Ivybridge. All leases is drafted differently and legal mistakes in the legal wording can result in certain clauses are missing. The following missing provisions could result in a defective lease:

• A provision to repair to or maintain parts of the premises
• A duty to insure the building
• A provision for the recovery of money spent for the benefit of another party.
• Maintenance charge proportions which don’t add up to the correct percentage

A defective lease will likely cause issues when trying to sell a property primarily because it impacts on the ability to obtain a mortgage on the property. Nationwide Building Society, Bank of Scotland, and Godiva Mortgages Ltd 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 provide security, obliging the buyer to pull out.

Leasehold Conveyancing in Ivybridge - Sample of Queries Prior to Purchasing

What is the name of the managing agents? Plenty Ivybridge leasehold flats will incur a service bill for the upkeep of the block levied by the management company. If you purchase the apartment you will have to meet this contribution, usually periodically during the year. This can be anything from several hundred pounds to thousands of pounds for blocks with lifts and large communal grounds. In all likelihood there will be a ground rent to be met yearly, this is usually not a large sum, say around £25-£75 but you should to enquire as on occasion it could be prohibitively expensive. Make sure you enquire if there are any onerous prohibitions in the lease. For example it is very common in Ivybridge leases that pets are not allowed in in a block in Ivybridge. If you love the flatin Ivybridge but your dog is not allowed to live with you then you will be presented with a difficult decision.

Other Topics

Lease Extensions in Ivybridge