I am hoping to sign contracts shortly on a garden flat in Belgravia. Conveyancing solicitors have said that they are sending me a report within the next couple of days. What should I be looking out for?

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

• You should receive a copy of the lease

Details of the parties to the lease, for example these could be the leaseholder (you), head lessor, landlord

The total extent of the premises. This will be the apartment itself but might include a roof space or basement if appropriate.

Whether the lease restricts you from subletting the property, or working from home

You need to be told what counts as a Nuisance in the lease

Repair and maintenance of the flat

What you can do if a neighbour is in violation of a provision in their lease? For details of the information to be contained in your report on your leasehold property in Belgravia please enquire of your lawyer in advance of your conveyancing in Belgravia

I am tempted by the attractive purchase price for a two flats in Belgravia which have approximately fifty years left on the lease term. Will this present a problem?

A lease is a legal document that entitles you to use the property for a period of time. As the lease shortens the value of the lease deteriorate and it becomes more expensive to acquire a lease extension. This is why it is generally wise to extend the lease term. More often than not it is difficult to sell a property with a short lease because mortgage lenders less inclined to grant a loan on such properties. Lease extension can be a difficult process. We recommend you seek professional help from a solicitor and surveyor with experience in this field

Last month I purchased a leasehold flat in Belgravia. Am I liable to pay service charges for periods before my ownership?

Where the service charge has already been demanded from the previous owner and they have not paid you would not usually be personally liable for the arrears. However, your landlord may still be able to take action to forfeit the lease. It is an essential part 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).

We expect to complete the sale of our £475000 garden flat in Belgravia next week. The freeholder has quoted £336 for Certificate of Compliance, building insurance schedule and previous years service charge statements. Is the landlord entitled to charge an administration fee for a leasehold conveyance in Belgravia?

Belgravia conveyancing on leasehold maisonettes nine out of ten times necessitates fees being levied by freeholders :

• Completing conveyancing due diligence questions
• Where consent is required before sale in Belgravia
• Supplying insurance information
• Deeds of covenant upon sale
• Registering of the assignment of the change of lessee after a sale

Your conveyancer will have no control over the level of the charges for this information but the average costs for the information for Belgravia leasehold premises is £350. For Belgravia 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.

I own a first floor flat in Belgravia. In the absence of agreement between myself and the freeholder, can the Leasehold valuation Tribunal make a decision on the sum due for a lease extension?

Where there is a missing landlord or if there is disagreement about the premium for a lease extension, under the relevant legislation it is possible to make an application to the LVT to assess the sum to be paid.

An example of a Lease Extension matter before the tribunal for a Belgravia flat is Flat 3 47 Cadogan Square in December 2010. the Tribunal determined that the premium payable to the landord by the leaseholder for the lease extension was £732,935 This case affected 1 flat. The unexpired term was 13.33 years.

Are there common deficiencies that you witness in leases for Belgravia properties?

There is nothing unique about leasehold conveyancing in Belgravia. Most leases is drafted differently and legal mistakes in the legal wording can sometimes mean that certain provisions are not included. The following missing provisions could result in a defective lease:

• A provision to repair to or maintain elements of the property
• Insurance obligations
• 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

You could have difficulties when selling your property if you have a defective lease primarily because it impacts on the ability to obtain a mortgage on the property. Lloyds TSB Bank, Norwich and Peterborough Building Society, and Alliance & Leicester all have very detailed 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 grant the mortgage, forcing the buyer to withdraw.

Other Topics

Lease Extensions in Belgravia