I’m about to sell my garden flat in Forest Gate.Conveyancing solicitors are to be appointed soon but I have just had a quarterly maintenance charge demand – Do I pay up?

It best that you pay 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 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. This will smooth the conveyancing process.

I've found a house that appears to be perfect, at a reasonable figure which is making it more attractive. I have since discovered that the title is leasehold as opposed to freehold. I would have thought that there are issues purchasing a house with a leasehold title in Forest Gate. Conveyancing solicitors have are soon to be instructed. Will they explain the issues?

Most houses in Forest Gate are freehold rather than leasehold. This is one of the situations where having a local solicitor who is familiar with the area can help the conveyancing process. it is apparent that you are buying in Forest Gate so you should seriously consider shopping around for a Forest Gate conveyancing practitioner and check that they are used to transacting on leasehold houses. As a matter of priority you will need to check the unexpired lease term. Being a lessee you will not be entirely free to do whatever you want to the property. The lease comes with conditions for example obtaining the landlord’spermission to conduct alterations. You may also be required to pay a maintenance charge towards the maintenance of the estate where the property is part of an estate. Your conveyancer should appraise you on the various issues.

I am attracted to a couple of apartments in Forest Gate both have approximately fifty years remaining on the leases. should I be concerned?

A lease is a legal document that entitles you to use the property for a prescribed time frame. As the lease shortens the value of the lease deteriorate and it becomes more costly to extend the lease. For this reason it is advisable to extend the lease term. Sometimes 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 conveyancer and surveyor with experience in this field

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

Where the service charge has already been demanded from the previous lessee and they have not paid you would not usually be personally liable for the arrears. Strange as it may seem, 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 ensure 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).

Do you have any top tips for leasehold conveyancing in Forest Gate from the perspective of speeding up the sale process?

• Much of the frustration in leasehold conveyancing in Forest Gate can be bypassed if you appoint lawyers the minute you market your property and request that they start to put together the leasehold documentation needed by the buyers solicitors.
• The majority landlords or Management Companies in Forest Gate 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 sought as soon as you have a buyer, thus reducing delays. The average time it takes to obtain the necessary information is three weeks. It is the most common reason for frustration in leasehold conveyancing in Forest Gate.
• Some Forest Gate leases require Licence to Assign from the landlord. If this applies to your lease, it would be prudent to place the estate agents on notice to make sure that the purchasers put in hand 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 solicitors.
• If you have had any disputes with your landlord or managing agents it is essential that these are settled prior to the flat being marketed. The buyers and their solicitors will be reluctant to purchase a flat where a dispute is unresolved. You may have to bite the bullet and discharge any arrears of service charge or settle the dispute prior to completion of the sale. 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 particulars of the dispute to the buyers, but it is clearly preferable to reveal the dispute as historic as opposed to ongoing.
• If you are supposed to have a share in the Management Company, you should ensure that you have the original share certificate. Obtaining a re-issued share certificate is often a time consuming process and frustrates many a Forest Gate home move. If a new share certificate is required, you should approach the company officers or managing agents (where applicable) for this as soon as possible.

Having spent months of dialogue we are unable to agree with our landlord on how much the lease extension should cost for our flat in Forest Gate. 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 statutes you can apply to the LVT to judgment on the price.

An example of a Freehold Enfranchisement case for a Forest Gate flat is 52 & 54 Green Street in February 2010. Following a vesting order by the County Court the Tribunal decided that the price that the Applicant for the freehold interest should pay is £20,543 This case was in relation to 2 flats. The unexpired lease term was 78 and 80.

Leasehold Conveyancing in Forest Gate - Sample of Queries Prior to Purchasing

This question is important as a) areas may cause problems for the building as the communal areas may begin to deteriorate if repairs remain unpaid b) if the leaseholders have a dispute with the running of the building you will want to have all the details