Questions and Answers: Fulham leasehold conveyancing
Harry (my fiance) and I may need to let out our Fulham 1st floor flat for a while due to a career opportunity. We instructed a Fulham conveyancing practice in 2002 but they have closed and we did not think at the time get any advice as to whether the lease allows us to sublet. How do we find out?
The lease dictates the relationship between the landlord and you the flat owner; in particular, it will say if subletting is not allowed, or permitted but only subject to certain conditions. The rule is that if the lease contains no specific ban or restriction, subletting is permitted. The majority of leases in Fulham do not prevent subletting altogether – such a provision would adversely affect the market value the property. In most cases there is simply a requirement that the owner notifies the freeholder, possibly sending a copy of the tenancy agreement.
I have just appointed agents to market my basement flat in Fulham.Conveyancing is yet to be initiated but I have just had a half-yearly service charge demand – Do I pay up?
Your conveyancing lawyer is likely to suggest that you should pay 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 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.
Can you offer any advice when it comes to finding a Fulham conveyancing firm to deal with our lease extension?
When appointing a conveyancer for your lease extension (regardless if they are a Fulham conveyancing firm) it is imperative that he or she should be familiar with the legislation and specialises in this area of conveyancing. We suggested that you make enquires with two or three firms including non Fulham conveyancing practices prior to instructing a firm. If the firm is ALEP accredited then that’s a bonus. Some following of questions could be of use:
- How familiar is the firm with lease extension legislation?
- If they are not ALEP accredited then why not?
Can you provide any top tips for leasehold conveyancing in Fulham from the perspective of expediting the sale process?
- A significant proportion of the frustration in leasehold conveyancing in Fulham can be reduced where you appoint lawyers the minute you market your property and request that they start to collate the leasehold information needed by the buyers solicitors.
- The majority landlords or managing agents in Fulham charge for providing management packs for a leasehold property. You or your lawyers should find out the actual amount of the charges. The management pack can be applied for as soon as you have 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 usual reason for frustration in leasehold conveyancing in Fulham.
- A minority of Fulham leases require Licence to Assign from the landlord. If this applies to your lease, it would be prudent to notify your estate agents 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 you have had conflict with your freeholder or managing agents it is essential that these are settled before the property is put on the market. The purchasers and their solicitors will be reluctant to purchase a property where a dispute is ongoing. 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 ahead of the contract papers being issued to the buyers’ solicitors. You are still duty bound to disclose particulars of the dispute to the purchasers, but it is clearly preferable to present the dispute as historic rather than unsettled.
- You believe that you know the number of years remaining on your lease but you should double-check by asking your solicitors. A purchaser's lawyer will be unlikely to recommend their client to to exchange contracts if the lease term is below 75 years. In the circumstances it is important at an early stage that you consider whether the lease requires a lease extension. If it does, contact your solicitors before you put your home on the market for sale.
Completion in due on the disposal of our £ 300000 maisonette in Fulham in just under a week. The landlords agents has quoted £<Macro 'feeRangeWithVAT'> for Certificate of Compliance, insurance certificate and 3 years statements of service charge. Is the landlord entitled to charge an administration fee for a flat conveyance in Fulham?
Fulham conveyancing on leasehold apartments normally requires the buyer’s conveyancer submitting questions for the landlord to answer. Although the landlord is not legally bound to address these enquiries the majority will be content to assist. They are entitled invoice a reasonable charge for answering enquiries or supplying documentation. There is no upper cap for such fees. The average costs for the paperwork that you are referring to is £350, in some transactions it exceeds £800. The management information fee demanded by the landlord must be accompanied by a summary of rights and obligations in relation to administration charges, without which the invoice is technically not due. In reality you have little option but to pay whatever is demanded should you wish to exchange contracts with the buyer.
My wife and I have hit a brick wall in trying to purchase the freehold in Fulham. Can the Leasehold Valuation Tribunal adjudicate on premiums?
Where there is a absentee freeholder or where there is disagreement about what the lease extension should cost, under the relevant statutes it is possible to make an application to the LVT to make a decision on the sum to be paid.
An example of a Freehold Enfranchisement case for a Fulham flat is 66 and 66a Wardo Avenue in November 2012. The Tribunal determined that the sum of £8,048 is payable by the Applicants in respect of the price for the freehold of the property This case affected 2 flats. The the number of years remaining on the existing lease(s) was 93 years and 162 years.
Fulham Conveyancing for Leasehold Flats - Examples of Questions you should consider before buying
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Best to be warned whether changing the roof or some other significant cost is coming up to be shared by the tenants and will materially increase the the service costs or require a one time payment.