I've found a house that seems to be perfect, at a reasonable figure which is making it more attractive. I have since found out that the title is leasehold rather than freehold. I would have thought that there are particular concerns purchasing a leasehold house in Hackney Wick. Conveyancing solicitors have not yet been instructed. Will they explain the issues?

Most houses in Hackney Wick are freehold and not leasehold. This is one of the situations where having a local conveyancer used to dealing with such properties who can help the conveyancing process. It is clear that you are buying in Hackney Wick so you should seriously consider shopping around for a Hackney Wick conveyancing solicitor and be sure that they are used to dealing with leasehold houses. First you will need to check the unexpired lease term. As a lessee you will not be at liberty to do whatever you want to the property. The lease comes with conditions such as obtaining the freeholder’spermission to carry out changes to the property. You may also be required to pay a maintenance charge towards the upkeep of the estate where the house is part of an estate. Your lawyer will report to you on the legal implications.

I am attracted to a two flats in Hackney Wick both have in the region of fifty years remaining on the lease term. Do I need to be concerned?

There is no doubt about it. A leasehold flat in Hackney Wick is a wasting asset as a result of the reducing lease term. The closer the lease gets to zero years unexpired, the more it reduces the value of the premises. The majority of purchasers and mortgage companies, leases with under 75 years become less and less marketable. On a more positive note, leaseholders can extend their leases by serving a Section 42 Notice. One stipulation is that they must have owned the premises for two years (unlike a Section 13 notice for purchasing the freehold, when leaseholders can participate from day one of ownership). When successful, they will have the right to an extension of 90 years to the current term and ground rent is effectively reduced to zero. Before moving forward with a purchase of a residence with a short lease term remaining you should talk to a solicitor specialising in lease extensions and leasehold enfranchisement. We are are happy to put you in touch with Hackney Wick conveyancing experts who will explain the options available to you during an initial telephone conversation free of charge. A more straightforward and quicker method of extending would be to contact your landlord directly and sound him out on the prospect of extending the lease You may find he or she is happy to negotiate informally and willing to consider your offer straight off, without having to involve anyone else. This will save you time and money and it could help you reach a lower price on the lease. You need to ensure that the agreed terms represent good long-term value compared with the standard benefits of the Section 42 Notice and that onerous clauses are not inserted into any redrafting of the lease.

I've recently bought a leasehold house in Hackney Wick. Do I have any liability for service charges for periods before completion of my purchase?

In a situation where the service charge has already been demanded from the previous owner 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. A critical element 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 advice for leasehold conveyancing in Hackney Wick from the perspective of speeding up the sale process?

• A significant proportion of the frustration in leasehold conveyancing in Hackney Wick can be bypassed if you instruct lawyers the minute your agents start advertising the property and request that they start to put together the leasehold information which will be required by the purchasers’ solicitors.
• In the event that you altered the property did you need the Landlord’s consent? In particular have you laid down wooden flooring? Hackney Wick leases often stipulate that internal structural changes or addition of wooden flooring require a licence from the Landlord acquiescing to such changes. Where you dont have the approvals in place do not contact the landlord without checking with your lawyer before hand.
• If there is a history of conflict with your freeholder or managing agents it is essential that these are resolved before the property is put on the market. The purchasers 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 the buyers completing the purchase. 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 buyers, but it is better to present the dispute as historic rather than unsettled.
• If you hold a share in a the freehold, you should ensure that you are holding the original share certificate. Organising a new share certificate can be a time consuming process and delays many a Hackney Wick conveyancing transaction. Where a duplicate share certificate is required, do contact the company officers or managing agents (if applicable) for this as soon as possible.
• You may think that you are aware of the number of years remaining on your lease but it would be wise to verify this via your conveyancers. A purchaser's conveyancer 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 as soon as possible that you consider whether the lease for your property needs extending. If it does, contact your solicitors before you put your property on the market for sale.

Notwithstanding our best endeavours, we have been unsuccessful in trying to purchase the freehold in Hackney Wick. Can this matter be resolved via the Leasehold Valuation Tribunal?

Most certainly. We can put you in touch with a Hackney Wick conveyancing firm who can help.

An example of a Freehold Enfranchisement decision for a Hackney Wick residence is 12 Nutfield Road in July 2014. the Tribunal judged that the price to be paid by the applicants for the freehold interest should be £19,572 This case related to 2 flats. The the unexpired residue of the current lease was 72.02 years.

What makes a Hackney Wick lease unmortgageable?

Leasehold conveyancing in Hackney Wick is not unique. Most leases are unique and drafting errors can sometimes mean that certain clauses are erroneous. For example, if your lease is missing any of the following, it could be defective:

• 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.
• Maintenance charge proportions which don’t add up to the correct percentage

A defective lease will likely cause problems when trying to sell a property primarily because it impacts on the ability to obtain a mortgage on the property. Yorkshire Building Society, The Mortgage Works, and Nottingham Building Society all have very detailed requirements when it comes to what is expected in a lease. Where a lender has been advised by their lawyers that the lease does not cover certain provisions they may refuse to grant the mortgage, forcing the buyer to pull out.

Hackney Wick Conveyancing for Leasehold Flats - Examples of Queries before Purchasing

Are there any major works in the planning that will add a premium to the maintenance fees?