I own a leasehold flat in Ladywood. Conveyancing and Lloyds TSB Bank mortgage are in place. I have received a letter from someone saying they have taken over the reversionary interest in the property. Attached was a ground rent demand for rent dating back to 1993. The conveyancing practitioner in Ladywood who previously acted has long since retired.Any advice?

The first thing you should do is make enquiries of HMLR to be sure that the individual claiming to own the freehold is indeed the new freeholder. You do not need to instruct a Ladywood conveyancing firm to do this as you can do this on the Land Registry website for a few pound. You should note that regardless, even if this is the rightful freeholder, under the Limitation Act 1980 the limitation period for recovery of ground rent is six years.

I am a negotiator for a busy estate agent office in Ladywood where we see a few leasehold sales derailed due to short leases. I have received conflicting advice from local Ladywood conveyancing firms. Could you clarify whether the vendor of a flat can commence the lease extension formalities for the buyer?

Provided that 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. 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 needs to be completed prior to, or at the same time as completion of the disposal of the property.

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 advice can you give us when it comes to appointing a Ladywood conveyancing firm to deal with our lease extension?

When appointing a conveyancer for your lease extension (regardless if they are a Ladywood conveyancing firm) it is most important that they be familiar with the legislation and specialises in this area of work. We suggested that you talk with several firms including non Ladywood conveyancing practices prior to instructing a firm. Where the conveyancing practice is ALEP accredited then that’s a bonus. Some following of questions could be useful:

• How experienced is the practice with lease extension legislation?
• What volume of lease extensions has the firm carried out in Ladywood in the last 12 months?

Do you have any top tips for leasehold conveyancing in Ladywood with the purpose of expediting the sale process?

• Much of the delay in leasehold conveyancing in Ladywood can be reduced where you instruct lawyers the minute you market your property and ask them to put together the leasehold information needed by the buyers representatives.
• Many landlords or Management Companies in Ladywood levy fees for providing management packs for a leasehold property. 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 accelerating the process. The typical amount of time it takes to receive management information is three weeks. It is the most frequent cause of delay in leasehold conveyancing in Ladywood.
• If there is a history of any disputes with your landlord or managing agents it is very important that these are settled prior to the flat being marketed. The buyers and their solicitors will be nervous about purchasing a property where a dispute is ongoing. You may need to swallow your pride and pay any arrears of service charge or settle the dispute prior to the buyers completing the purchase. It is therefore preferable to have any dispute settled prior to the contract papers being issued to the buyers’ solicitors. You will still have to reveal details of the dispute to the buyers, but it is clearly preferable to reveal the dispute as historic rather than unsettled.
• If you hold a share in a the freehold, you should ensure that you have the original share document. Arranging a new share certificate can be a time consuming formality and delays many a Ladywood conveyancing transaction. Where a reissued share certificate is necessary, you should approach the company director and secretary or managing agents (if applicable) for this as soon as possible.
• You may think that you are aware of the number of years remaining on your lease but it would be advisable verify this via your solicitors. A buyer’s lawyer will be unlikely to recommend their client to proceed with the purchase of a leasehold property the lease term is under 75 years. In the circumstances it is essential at an early stage that you consider whether the lease term 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 £ 175000 garden flat in Ladywood in nine days. The managing agents has quoted £<Macro 'feeRangeWithVAT'> for Landlord’s certificate, building insurance schedule and 3 years statements of service charge. Is it legal for a freeholder to charge an administration fee for a leasehold conveyance in Ladywood?

Ladywood conveyancing on leasehold maisonettes more often than not requires the buyer’s conveyancer sending enquiries for the landlord to answer. Although the landlord is under no legal obligation to address these enquiries most will be content to do so. They may invoice a reasonable administration fee for answering questions or supplying documentation. There is no upper cap for such fees. The average fee for the paperwork that you are referring to is £350, in some cases it is in excess of £800. The administration charge invoiced by the landlord must be accompanied by a summary of rights and obligations in respect of administration charges, without which the charge is technically not due. In reality one has little choice but to pay whatever is demanded if you want to complete the sale of your home.

Leasehold Conveyancing in Ladywood - A selection of Queries Prior to buying

Best to be warned if fixing the lift or some other significant cost is pending that will be shared by the leaseholders and may well dramatically impact the level of the maintenance fees or require a specific payment. Most Ladywood leasehold flats will have a service bill for maintenance of the building invoiced by the management company. Should you buy the property you will have to meet this charge, normally in instalments accross the year. This may be anything from a few hundred pounds to thousands of pounds for buildings with lifts and large communal areas. There will also be a rentcharge for you to pay annual, this is usually not a large sum, say approximately £50-£100 but you need to check it because on occasion it can be surprisingly expensive. For most Ladywood leaseholds the cost for major works are not built into the service charges, although some managing agents in Ladywood ask leasehold owners to contribute towards a reserve fund and this is used to offset against larger repairs or maintenance.