Examples of recent questions relating to leasehold conveyancing in Kemp Town
I am in need of some leasehold conveyancing in Kemp Town. Before diving in I would like to find out the remaining lease term.
If the lease is recorded at the land registry - and most are in Kemp Town - 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.
I am looking at a couple of flats in Kemp Town which have about forty five years unexpired on the leases. Will this present a problem?
There is no doubt about it. A leasehold flat in Kemp Town is a deteriorating asset as a result of the reducing lease term. The nearer the lease gets to zero years unexpired, the more it adversely affects the value of the property. For most purchasers and lenders, leases with under eighty years become less and less marketable. On a more upbeat note, leaseholders can extend their leases by serving a Section 42 Notice. One stipulation is that they must have owned the property for two years (unlike a Section 13 notice for purchasing the freehold, when leaseholders can participate from day one of ownership). When successful, they will have the right to an extension of 90 years to the current term and ground rent is effectively reduced to zero. Before moving forward with a purchase of a residence with a short lease term remaining you should talk to a solicitor specialising in lease extensions and leasehold enfranchisement. We are are happy to put you in touch with Kemp Town conveyancing experts who will explain the options available to you during an initial telephone conversation free of charge. A more straightforward and quicker method of extending would be to contact your landlord directly and sound him out on the prospect of extending the lease You may find he or she is happy to negotiate informally and willing to consider your offer straight off, without having to involve anyone else. This will save you time and money and it could help you reach a lower price on the lease. You need to ensure that the agreed terms represent good long-term value compared with the standard benefits of the Section 42 Notice and that onerous clauses are not inserted into any redrafting of the lease.
I've recently bought a leasehold house in Kemp Town. Do I have any liability for service charges relating to a period prior to completion of my purchase?
In a situation 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 be sure 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 am a negotiator for a long established estate agent office in Kemp Town where we see a number of flat sales put at risk due to short leases. I have been given conflicting advice from local Kemp Town conveyancing solicitors. Could you shed some light as to whether the owner of a flat can start 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. The benefit of this is that the proposed purchaser 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 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.
Our conveyancer has advised that he intends to complete and exchange simultaneously on our sale of a £200000 flat in Kemp Town in six days. The managing agents has quoted £408 for Certificate of Compliance, building insurance schedule and 3 years statements of service charge. Is the landlord entitled to charge exorbitant fees for a leasehold conveyance in Kemp Town?
Kemp Town conveyancing on leasehold maisonettes usually results in administration charges invoiced by landlords agents :
- Answering conveyancing due diligence questions
- Where consent is required before sale in Kemp Town
- Supplying insurance information
- Deeds of covenant upon sale
- Registering of the assignment of the change of lessee after a sale
Kemp Town Conveyancing for Leasehold Flats - Examples of Questions you should consider Prior to Purchasing
The best form of lease arrangement is if the freehold reversion is in the ownership of the leaseholders. In this situation the tenants 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 retained by the leaseholders.
The answer will be important as a) areas can cause problems in the block as the common areas may begin to deteriorate if repairs remain unpaid b) if the tenants have a dispute with the running of the building you will need to have complete disclosure
Please note that where the lease has less than eighty years it will impact the salability of the apartment. It is worth checking with your mortgage company that they are content with the length of the lease. Leases with fewer than 80 years remaining means that you will almost definitely need a lease extension at some point and it is worth finding out what this would cost. Remember, in most cases you will be be obliged to have been the owner of the premises for 24 months before you are legally able to extend the lease.