You should [be sent a copy of the lease|receive a copy of the lease]

I am hoping to exchange soon on a basement flat in Elephant and Castle. Conveyancing solicitors have said that they report fully next week. What should I be looking out for?

Your report on title for your leasehold conveyancing in Elephant and Castle should include some of the following:

• Setting out your rights in respect of the communal areas in the building.For instance, does the lease contain a right of way over a path or staircase?
• Whether the lease restricts you from subletting the property, or having a home office for business
• You should be told what counts as a Nuisance in the lease
• You should have a good understanding of the insurance provisions
• Changes to the flat (alterations and additions)
• 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.

For details of the information to be contained in your report on your leasehold property in Elephant and Castle please enquire of your solicitor in advance of your conveyancing in Elephant and Castle

I have just appointed agents to market my basement apartment in Elephant and Castle.Conveyancing solicitors are to be appointed soon but I have just received a yearly service charge invoice – Do I pay up?

It best that you clear the invoice 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 managing agents will not acknowledge the buyer until 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 Elephant and Castle which have in the region of 50 years left on the lease term. Do I need to be concerned?

A lease is a right to use the property for a period of time. As a lease shortens the marketability of the lease deteriorate and it becomes more costly to acquire a lease extension. This is why it is generally wise to increase the term of the lease. 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 advise that you seek professional assistance from a conveyancer and surveyor with experience in this field

I work for a busy estate agent office in Elephant and Castle where we have experienced a number of flat sales derailed due to leases having less than 80 years remaining. I have been given conflicting advice from local Elephant and Castle conveyancing solicitors. Please can you confirm whether the vendor of a flat can initiate 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 commence the lease extension process and assign the benefit of the notice to the purchaser. The benefit of this is that the proposed purchaser can avoid having to sit tight for 2 years for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed prior to, or simultaneously with completion of the disposal of the property.

Alternatively, it may be possible 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 purchaser.

Do you have any top tips for leasehold conveyancing in Elephant and Castle from the perspective of saving time on the sale process?

• Much of the frustration in leasehold conveyancing in Elephant and Castle can be avoided if you appoint lawyers the minute your agents start marketing the property and ask them to put together the leasehold information needed by the purchasers’ representatives.
• Many freeholders or managing agents in Elephant and Castle levy fees for supplying management packs for a leasehold premises. You or your lawyers should find out the actual amount of the charges. The management information sought 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 common cause of delay in leasehold conveyancing in Elephant and Castle.
• Some Elephant and Castle leases require Licence to Assign from the landlord. If this is the case, you should place the estate agents on notice to make sure that the purchasers obtain financial (bank) and professional references. The bank reference should make it clear that the buyer is 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 buyers or their lawyers.
• If you hold a share in a the Management Company, you should make sure that you have the original share certificate. Obtaining a new share certificate can be a time consuming formality and slows down many a Elephant and Castle conveyancing deal. If a new share is needed, do contact the company officers or managing agents (where applicable) for this as soon as possible.
• You may think that you are aware of the number of years left on your lease but it would be wise to double-check by asking your lawyers. A buyer’s lawyer will be unlikely to recommend their client to proceed with the purchase of a leasehold property the remaining number of years is under 75 years. It is therefore important at an early stage that you identify whether the lease term for your property needs extending. If it does, contact your solicitors before you put your home on the market for sale.

Following months of negotiations we are unable to agree with our landlord on how much the lease extension should cost for our flat in Elephant and Castle. Can we issue an application to the Residential Property Tribunal Service?

Where there is a absentee freeholder or if there is disagreement about what the lease extension should cost, under the relevant legislation you can apply to the LVT to assess the price.

An example of a Lease Extension case for a Elephant and Castle residence is Ground Floor Flat 39 Bronsart Road in May 2010. Following a vesting order by West London County Court the Leasehold Valuation Tribunal concluded that the price to be paid for the extended lease of the premises was Thirteen Thousand Two hundred pounds (£13,200) in accordance with the valuation. The extended lease was granted for a term of 90 years from the expiry date of the Lease and at a peppercorn ground rent from the date of the vesting order. This case was in relation to 1 flat. The the number of years remaining on the existing lease(s) was 74.77 years.

I inherited a 1 bedroom flat in Elephant and Castle, conveyancing formalities finalised 2011. Can you let me have an estimate of the premium that my landlord can legally expect in return for granting a renewal of my lease? Comparable properties in Elephant and Castle with an extended lease are worth £202,000. The ground rent is £45 invoiced every year. The lease comes to an end on 21st October 2104

With 78 years remaining on your lease we estimate the price of your lease extension to span between £8,600 and £9,800 as well as professional fees.

The suggested premium range above a general guide to costs for renewing a lease, but we cannot give you a more accurate figure without more detailed due diligence. Do not use the figures in tribunal or court proceedings. There are no doubt additional concerns that need to be considered and clearly you want to be as accurate as possible in your negotiations. Please do not move forward placing reliance on this information before getting professional advice.