Estate agents have just been given the go-ahead to market my 2 bed apartment in Canary Wharf.Conveyancing solicitors are to be appointed soon but I have just had a half-yearly maintenance charge invoice – should I leave it to the buyer to sort out?

Your conveyancing lawyer is likely to suggest that you should discharge the service charge as normal because all ground rent and service charges will be apportioned on completion, so you will be reimbursed by the buyer for the period running from after the completion date to the next payment date. Most management companies will not acknowledge the buyer unless the service charges have been paid and are up to date so it is important for both buyer and seller for the seller to show that they are up to date. Having a clear account will assist your cause and will leave you no worse off financially.

I am tempted by the attractive purchase price for a couple of flats in Canary Wharf which have about fifty years remaining on the lease term. should I be concerned?

A lease is a right to use the property for a period of time. As a lease shortens the value of the lease reduces and it becomes more expensive to extend the lease. This is why it is generally wise to extend the lease term. It is often difficulties arise selling premises with a short lease as mortgage lenders less inclined to grant a loan on properties of this type. Lease extension can be a protracted process. We advise that you get professional help from a conveyancer and surveyor with experience in this arena

What advice can you give us when it comes to choosing a Canary Wharf conveyancing firm to deal with our lease extension?

If you are instructing a conveyancer for your lease extension (regardless if they are a Canary Wharf conveyancing practice) it is imperative that they be familiar with the legislation and specialises in this area of work. We suggested that you speak with several firms including non Canary Wharf conveyancing practices before you instructing a firm. Where the conveyancing practice is ALEP accredited then that’s a bonus. Some following of questions could be helpful:

• Can they put you in touch with client in Canary Wharf who can give a testimonial?
• What are the charges for lease extension work?

Our conveyancer has advised that he intends to complete and exchange simultaneously on the sale of our £ 400000 flat in Canary Wharf on Thursday in a week. The landlords agents has quoted £<Macro 'feeRangeWithVAT'> for Certificate of Compliance, insurance certificate and previous years statements of service charge. Is the landlord entitled to charge exorbitant fees for a flat conveyance in Canary Wharf?

Canary Wharf conveyancing on leasehold maisonettes normally necessitates the buyer’s conveyancer submitting questions for the landlord to address. Although the landlord is under no legal obligation to answer such questions the majority will be content to assist. They may levy a reasonable charge for responding to enquiries or supplying documentation. There is no upper cap for such fees. The average fee for the paperwork that you are referring to is over three hundred pounds, in some situations it is in excess of £800. The management information fee required by the landlord must be accompanied by a synopsis of rights and obligations in respect of administration fees, otherwise the invoice is technically not due. Reality however dictates that you have little choice but to pay whatever is demanded should you wish to sell the property.

I have given up trying to purchase the freehold in Canary Wharf. Can this matter be resolved via the Leasehold Valuation Tribunal?

Where there is a absentee landlord or if there is dispute about what the lease extension should cost, under the relevant legislation it is possible to make an application to the Leasehold Valuation Tribunal to arrive at the price.

An example of a Freehold Enfranchisement case for a Canary Wharf flat is 12, 14 & 16 Hull Close in May 2010. the Tribunal determined that the premium payable for the acquisition of the freehold to the subject premises was the sum of £18,300 This case was in relation to 3 flats. The remaining number of years on the lease was 101.61 years.

In relation to leasehold conveyancing in Canary Wharf what are the most common lease defects?

Leasehold conveyancing in Canary Wharf is not unique. Most leases are individual and legal mistakes in the legal wording can sometimes mean that certain clauses are wrong. The following missing provisions could result in a defective lease:

• A provision to repair to or maintain elements of the property
• A duty to insure the building
• 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 could encounter 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. Accord Mortgages Ltd, Virgin Money, and Platform Home Loans Ltd all have express conveyancing instructions 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.

Leasehold Conveyancing in Canary Wharf - A selection of Queries before Purchasing

It would be sensible to find out if there are any onerous prohibitions in the lease. By way of example it is very common in Canary Wharf leases that pets are not permitted in certain buildings in Canary Wharf. If you love the propertyin Canary Wharf but your dog is not allowed to live with you then you will be faced hard choice. Where a Canary Wharf lease has less than eighty years it will affect the value of the apartment. Check with your lender that they are willing to go ahead with the loan given the lease term. Leases with less than 80 years remaining means that you will probably have to extend the lease sooner rather than later and it is worth discovering what this will be. For most Canary Wharflease extensions you will need to own the premises for a couple of years before you are eligible to extend the lease. How long is the Lease?