Having checked my lease I have discovered that there are only 72 years left on my lease in Finsbury. I am keen to extend my lease but my freeholder is missing. What should I do?

On the basis that you qualify, under the Leasehold Reform, Housing and Urban Development Act 1993 you can submit an application to the County Court for an order to dispense with the service of the initial notice. This will mean that your lease can be lengthened by the magistrate. You will be obliged to demonstrate that you have done all that could be expected to track down the freeholder. On the whole a specialist would be helpful to carry out a search and prepare a report to be accepted by the court as evidence that the landlord is indeed missing. It is wise to seek advice from a property lawyer both on investigating the landlord’s absence and the vesting order request to the County Court covering Finsbury.

I have just started marketing my basement apartment in Finsbury.Conveyancing is yet to be initiated but I have just received a quarterly service charge demand – Do I pay up?

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 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. This will smooth the conveyancing process.

I am hoping to put an offer on a small detached house that seems to be perfect, at a great price which is making it all the more appealing. I have since discovered that it's a leasehold rather than freehold. I am assuming that there are particular concerns buying a house with a leasehold title in Finsbury. Conveyancing solicitors have are soon to be instructed. Will they explain the issues?

The majority of houses in Finsbury are freehold and not leasehold. This is one of the situations where having a local conveyancer used to dealing with such properties who can assist with the conveyancing process. It is clear that you are purchasing in Finsbury in which case you should be looking for a Finsbury conveyancing solicitor and check that they are used to transacting on leasehold houses. First you will need to check the unexpired lease term. As a tenant you will not be at liberty to do whatever you want with the house. The lease will likely included provisions for example obtaining the freeholder’spermission to carry out alterations. You may also be required to pay a maintenance charge towards the upkeep of the communal areas where the house is part of an estate. Your conveyancer will report to you on the legal implications.

Can you offer any advice when it comes to finding a Finsbury conveyancing firm to deal with our lease extension?

When appointing a solicitor for your lease extension (regardless if they are a Finsbury conveyancing practice) it is essential that they be familiar with the legislation and specialises in this area of work. We recommend that you talk with two or three firms including non Finsbury 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 useful:

• How familiar is the firm with lease extension legislation?
• Can they put you in touch with client in Finsbury who can give a testimonial?

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

• A significant proportion of the delay in leasehold conveyancing in Finsbury can be avoided if you instruct lawyers the minute your agents start marketing the property and ask them to collate the leasehold information which will be required by the buyers solicitors.
• Many freeholders or managing agents in Finsbury levy fees for supplying management packs for a leasehold premises. You or your lawyers should discover 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 obtain the necessary information is three weeks. It is the most common cause of frustration in leasehold conveyancing in Finsbury.
• Some Finsbury leases require Landlord’s consent to the sale and approval of the buyers. If this applies to your lease, you should place the estate agents on notice to make sure that the purchasers put in hand financial (bank) and professional references. The bank reference should make it clear that the buyer is able to meet 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 buyers or their solicitors.
• If there is a history of any disputes with your landlord or managing agents it is essential that these are resolved before the property is marketed. The buyers and their solicitors will be warry about purchasing a flat where there is a current dispute. You may have to bite the bullet and discharge any arrears of service charge or resolve 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 purchasers, but it is better to present the dispute as historic as opposed to unresolved.
• You believe that you know the number of years left on your lease but it would be advisable double-check via 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 less than 75 years. In the circumstances it is 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.

My wife and I have hit a brick wall in trying to reach an agreement for a lease extension in Finsbury. Can the Leasehold Valuation Tribunal adjudicate on premiums?

Where there is a absentee landlord or if there is dispute about what the lease extension should cost, under the relevant statutes it is possible to make an application to the Leasehold Valuation Tribunal to make a decision on the amount due.

An example of a Lease Extension decision for a Finsbury residence is Flat 89 Trinity Court Grays Inn Road in February 2013. the Tribunal found that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 to the Leasehold Reform, Housing and Urban Development Act 1993 should be £36,229. This case affected 1 flat. The the number of years remaining on the existing lease(s) was 66.8 years.

Finsbury Conveyancing for Leasehold Flats - Sample of Queries Prior to Purchasing

The majority of Finsbury leasehold properties will incur a service charge for maintenance of the block set on behalf of the management company. Where you acquire the flat you will have to meet this charge, usually periodically accross the year. This may vary from a few hundred pounds to thousands of pounds for large purpose-built buildings. There will also be a ground rent for you to pay annual, normally this is not a exorbitant sum, say about £50-£100 but you should to enquire as on occasion it could be many hundreds of pounds. You should want to find out as much as you can concerning the company managing the building as they will either make life much easier or problematic. Being a leasehold owner you are frequently at the mercy of the managing agents from a financial perspective and when it comes to every day matters such as the tidiness of the common parts. Ask other tenants if they are happy with their service. On a final note, be sure you understand the dates that the maintenance fees are due to the managing agents and precisely what it includes.