Harrow on the Hill leasehold conveyancing: Q and A’s
I am hoping to sign contracts shortly on a basement flat in Harrow on the Hill. Conveyancing solicitors have said that they report fully next week. Are there areas in the report that I should be focusing on?
Your report on title for your leasehold conveyancing in Harrow on the Hill should include some of the following:
- Do you need to have carpet in the flat or are you allowed wood flooring?
I am looking at a two maisonettes in Harrow on the Hill both have about fifty years remaining on the lease term. Do I need to be concerned?
There is no doubt about it. A leasehold apartment in Harrow on the Hill is a deteriorating asset as a result of the shortening lease. The closer the lease gets to its expiry date, the more it adversely affects the salability of the property. The majority of purchasers and banks, leases with less than 75 years become less and less attractive. On a more upbeat 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 premises 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 Harrow on the Hill 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 They may agree to a smaller lump sum and an increase in the ground rent, but to shorter extension terms in return. You need to ensure that any new 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 work for a reputable estate agent office in Harrow on the Hill where we see a few flat sales put at risk due to leases having less than 80 years remaining. I have received conflicting advice from local Harrow on the Hill conveyancing solicitors. Could you confirm whether the owner of a flat can initiate the lease extension formalities for the purchaser on completion of the sale?
Provided that the seller has owned the lease for at least 2 years it is possible, to serve a Section 42 notice to kick-start the lease extension process and assign the benefit of the notice to the purchaser. The benefit of this is that the buyer need not have 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 before, or at the same time as completion of the disposal of the property.
An alternative approach is to agree the lease extension with the freeholder 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 buyer.
Can you offer any advice when it comes to finding a Harrow on the Hill conveyancing firm to deal with our lease extension?
If you are instructing a conveyancer for your lease extension (regardless if they are a Harrow on the Hill conveyancing practice) it is imperative that they be familiar with the legislation and specialises in this area of work. We recommend that you make enquires with several firms including non Harrow on the Hill conveyancing practices prior to instructing a firm. Where the conveyancing practice is ALEP accredited then so much the better. Some following of questions might be helpful:
- How many lease extensions have they completed in Harrow on the Hill in the last twenty four months?
If all goes to plan we aim to complete the sale of our £500000 garden flat in Harrow on the Hill next week. The management company has quoted £420 for Certificate of Compliance, building insurance schedule and 3 years service charge statements. Is the landlord entitled to charge exorbitant fees for a flat conveyance in Harrow on the Hill?
Harrow on the Hill conveyancing on leasehold apartments often involves the purchaser’s solicitor sending enquiries for the landlord to answer. Although the landlord is not legally bound to address these enquiries the majority will be willing to do so. They are at liberty invoice a reasonable charge for answering enquiries or supplying documentation. There is no upper cap for such fees. The average fee for the paperwork that you are referring to is £350, in some cases it is above £800. The administration charge demanded by the landlord must be sent together with a synopsis of rights and obligations in relation to administration fees, without which the charge is technically not due. Reality however dictates that you have little choice but to pay whatever is demanded should you wish to sell the property.
Having spent years of dialogue we cannot agree with our landlord on how much the lease extension should cost for our flat in Harrow on the Hill. Can we issue an application to the Residential Property Tribunal Service?
Absolutely. We are happy to put you in touch with a Harrow on the Hill conveyancing firm who can help.
An example of a Lease Extension decision for a Harrow on the Hill flat is flat 93b Welldon Crescent in May 2009. The Tribunals valuation for a 90-year lease extension of this fat was £13,171 This case was in relation to 1 flat. The unexpired lease term was 75.25 years.