Helen (my wife) and I may need to rent out our Liverpool ground floor flat temporarily due to taking a sabbatical. We instructed a Liverpool conveyancing firm in 2003 but they have since shut and we did not think at the time get any guidance as to whether the lease allows us to sublet. How do we find out?

A lease governs the relationship between the freeholder and you the leaseholder; in particular, it will indicate if subletting is prohibited, or permitted but only subject to certain caveats. The accepted inference is that if the lease contains no expres ban or restriction, subletting is allowed. Most leases in Liverpool do not prevent an absolute prevention of subletting – such a provision would adversely affect the market value the flat. Instead, there is usually a basic requirement that the owner notifies the freeholder, possibly sending a duplicate of the sublease.

Due to exchange soon on a ground floor flat in Liverpool. Conveyancing lawyers have said that they report fully tomorrow. Are there areas in the report that I should be focusing on?

The report on title for your leasehold conveyancing in Liverpool should include some of the following:

• Setting out your rights in relation to common areas in the block.By way of example, does the lease permit a right of way over a path or staircase?
• You should have a good understanding of the insurance provisions
• Repair and maintenance of the flat
• The landlord’s rights to access the flat you be made aware that your landlord has rights of access and I know how much notice s/he must provide.
• The landlord’s obligations to repair and maintain the building. It is important that you know who is responsible for the repair and maintenance of every part of the building
• What the implications are if you breach a clause of your lease?

I work for a busy estate agent office in Liverpool where we see a few leasehold sales put at risk as a result of short leases. I have been given inconsistent advice from local Liverpool conveyancing solicitors. Can you confirm whether the seller of a flat can start the lease extension process for the purchaser on completion of the sale?

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 buyer need not have to sit tight for 2 years for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment has to be done before, or simultaneously with completion of the disposal of the property.

An alternative approach is 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 buyer.

Can you provide any top tips for leasehold conveyancing in Liverpool from the point of view of expediting the sale process?

• Much of the frustration in leasehold conveyancing in Liverpool can be avoided where you appoint lawyers as soon as your agents start advertising the property and request that they start to put together the leasehold documentation which will be required by the buyers conveyancers.
• The majority landlords or managing agents in Liverpool levy fees for supplying management packs for a leasehold homes. You or your lawyers should find out the actual amount of the charges. The management pack sought on or before finding a buyer, thus accelerating the process. The average time it takes to obtain the necessary information is three weeks. It is the most frequent cause of delay in leasehold conveyancing in Liverpool.
• In the event that you altered the property did you need the Landlord’s consent? In particular have you installed wooden flooring? Liverpool leases often stipulate that internal structural alterations or laying down wooden flooring calls for a licence issued by the Landlord acquiescing to such alterations. Where you fail to have the approvals in place do not communicate with the landlord without checking with your lawyer in advance.
• Some Liverpool leases require Licence to Assign from the landlord. If this is the case, it would be prudent to notify your estate agents to make sure that the purchasers put in hand financial (bank) and professional references. Any bank reference will need to confirm that the buyers are financially capable of paying the yearly 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 you should verify this via your lawyers. A buyer’s lawyer will not be happy to advise their client to where the lease term is below 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.

Are there common defects that you witness in leases for Liverpool properties?

Leasehold conveyancing in Liverpool is not unique. Most leases are individual and drafting errors can sometimes mean that certain clauses are missing. For example, if your lease is missing any of the following, it could be defective:

• A provision to repair to or maintain elements of the property
• Insurance obligations
• Clauses dealing with recovering service charges for expenditure on the building or common parts.
• Service charge per centages that don't add up correctly leaving a shortfall

You may have a problem when selling your property if you have a defective lease as they can affect a potential buyer’s ability to obtain a mortgage. Halifax, Chelsea Building Society, and Bank of Ireland all have very detailed conveyancing instructions when it comes to what is expected in a lease. If a mortgage lender believes that the lease is problematic they may refuse to provide security, obliging the buyer to withdraw.

Liverpool Conveyancing for Leasehold Flats - Sample of Queries Prior to buying

The prefered form of lease structure is if the freehold title is in the ownership of the leaseholders. In this situation the leaseholders enjoy control and even though a managing agent is usually employed where the building is larger than a house conversion, the managing agent is directed by the tenants. It would be sensible to find out if there are any onerous restrictions in the lease. For example it is reasonably common in Liverpool leases that pets are not permitted in certain buildings in Liverpool. If you like the flatin Liverpool yet your dog is not allowed to make the move with you then you will be faced difficult determination.