I am employed by a reputable estate agency in Kidwelly where we have witnessed a few flat sales derailed as a result of short leases. I have received contradictory information from local Kidwelly conveyancing solicitors. Can you clarify whether the owner of a flat can commence the lease extension process for the purchaser on completion of the sale?

As long as the seller has owned the lease for at least 2 years it is possible, to serve a Section 42 notice to commence 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 wait 2 years to extend their lease. Both sets of lawyers will agree to form of assignment. The assignment has to be done before, or simultaneously with 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.

What are your top tips when it comes to choosing a Kidwelly conveyancing firm to deal with our lease extension?

If you are instructing a conveyancer for lease extension works (regardless if they are a Kidwelly conveyancing firm) it is imperative that he or she should be familiar with the legislation and specialises in this area of conveyancing. We suggested that you talk with two or three firms including non Kidwelly conveyancing practices prior to instructing a firm. If the firm is ALEP accredited then that’s a bonus. Some following of questions might be useful:

• If they are not ALEP accredited then what is the reason?

What volume of lease extensions has the firm carried out in Kidwelly in the last twenty four months?

Do you have any advice for leasehold conveyancing in Kidwelly from the perspective of expediting the sale process?

• Much of the delay in leasehold conveyancing in Kidwelly can be reduced where you appoint lawyers the minute you market your property and request that they start to collate the leasehold documentation needed by the buyers lawyers.
• Many freeholders or Management Companies in Kidwelly levy fees for providing management packs for a leasehold premises. You or your lawyers should enquire as to the actual amount of the charges. The management pack can be applied for on or before finding a buyer, thus reducing delays. The average time it takes to obtain the necessary information is three weeks. It is the most usual cause of frustration in leasehold conveyancing in Kidwelly.

In the event that you altered the property did you need the Landlord’s approval? Have you, for example installed wooden flooring? Most leases in Kidwelly state that internal structural changes or installing wooden flooring calls for a licence from the Landlord consenting to such works. Where you fail to have the consents to hand do not contact the landlord without contacting your lawyer in the first instance.

Some Kidwelly leases require Landlord’s consent to the sale and approval of the buyers. If this applies to your lease, it would be prudent to notify your estate agents to make sure that the purchasers obtain financial (bank) and professional references. Any bank reference will need to confirm that the buyers are 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 actual amount of the service charge so that they can pass this information on to the purchasers or their lawyers.

You may think that you are aware of the number of years left on your lease but it would be advisable verify this via your solicitors. A buyer’s conveyancer will not be happy to advise their client to where the lease term is under 80 years. In the circumstances it is important at an early stage that you consider whether the lease requires a lease extension. If it does, contact your solicitors before you put your premises on the market for sale.

If all goes to plan we aim to complete the disposal of our £225000 maisonette in Kidwelly in nine days. The freeholder has quoted £396 for Certificate of Compliance, insurance certificate and previous years statements of service charge. Is the landlord entitled to charge exorbitant fees for a leasehold conveyance in Kidwelly?

Kidwelly conveyancing on leasehold flats usually involves fees being levied by managing agents :

• Answering pre-exchange enquiries
• Where consent is required before sale in Kidwelly
• Supplying insurance information
• Deeds of covenant upon sale
• Registering of the assignment of the change of lessee after a sale

Your lawyer will have no control over the level of the charges for this information but the average costs for the information for Kidwelly leasehold property is £350. For Kidwelly conveyancing transactions it is customary for the seller to pay for these costs. The landlord or their agents are under no legal obligation to answer such questions most will be willing to do so - albeit often at exorbitant prices where the fees bear little relation to the work involved. Unfortunately there is no law that requires fixed charges for administrative tasks. Neither is there any legal time frame by which they are obliged to supply the information.

When it comes to leasehold conveyancing in Kidwelly what are the most frequent lease problems?

Leasehold conveyancing in Kidwelly is not unique. Most leases is drafted differently 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 building
• 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

You may have a problem when selling your property if you have a defective lease primarily because it impacts on the ability to obtain a mortgage on the property. HSBC Bank, Norwich and Peterborough Building Society, and Clydesdale all have express requirements when it comes to what is expected in a lease. If a mortgage lender believes that the lease does not cover certain provisions they may refuse to provide security, forcing the purchaser to withdraw.

Kidwelly Leasehold Conveyancing - Sample of Queries Prior to buying

If a Kidwelly lease has less than eighty years it will affect the marketability of the property. It is worth checking with your lender that they are willing to lend given the lease term. A short lease means that you will probably require a lease extension sooner rather than later and you need to have some idea of how much this would cost. Remember, in most cases you would need to own the property for two years before you are legally able to extend the lease. How long is the Lease? How is the lease structured?

Other Topics

Lease Extensions in Kidwelly