Due to exchange soon on a studio apartment in Knightsbridge. Conveyancing solicitors have said that they will have a report out to me tomorrow. What should I be looking out for?

Your report on title for your leasehold conveyancing in Knightsbridge should include some of the following:

• Are pets allowed in the flat?
• Does the lease prevent you from letting out the property, or working from home
• Ground rent - how much and when you need to pay, and also know whether this will change in the future
• An explanation as to the provision in the lease to pay service charges - with regard to both the building, and the more general rights a leaseholder has
• Whether your lease has a provision for a reserve fund?
• I don't know whether the lease allows me to alter or improve anything in the flat - you should know whether it applies to all alterations or just structural alteration, and whether consent is required

I've recently bought a leasehold house in Knightsbridge. Am I liable to pay service charges for periods before completion of my purchase?

In a situation 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 be sure 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).

I am employed by a long established estate agent office in Knightsbridge where we have experienced a number of flat sales jeopardised as a result of short leases. I have been given contradictory information from local Knightsbridge conveyancing firms. Could you confirm whether the owner of a flat can instigate the lease extension formalities for the buyer?

Provided that the seller has been the owner 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. This means that the proposed purchaser 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 sale.

An alternative approach is to extend the lease informally by agreement with the landlord 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.

What are your top tips when it comes to choosing a Knightsbridge conveyancing practice to carry out our lease extension conveyancing?

When appointing a conveyancer for lease extension works (regardless if they are a Knightsbridge conveyancing firm) it is essential that he or she should be familiar with the legislation and specialises in this area of work. We recommend that you talk with several firms including non Knightsbridge conveyancing practices prior to instructing a firm. If the firm is ALEP accredited then so much the better. Some following of questions might be helpful:

• How experienced is the firm with lease extension legislation?
• What volume of lease extensions has the firm conducted in Knightsbridge in the last 12 months?

Do you have any top tips for leasehold conveyancing in Knightsbridge with the intention of saving time on the sale process?

• Much of the frustration in leasehold conveyancing in Knightsbridge can be avoided where you appoint lawyers as soon as your agents start advertising the property and ask them to collate the leasehold information which will be required by the buyers conveyancers.
• In the event that you altered the property did you need the Landlord’s permission? Have you, for example installed wooden flooring? Knightsbridge leases often stipulate that internal structural alterations or installing wooden flooring calls for a licence issued by the Landlord consenting to such alterations. Should you fail to have the approvals in place you should not communicate with the landlord without contacting your conveyancer first.
• Some Knightsbridge 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 obtain bank and professional references. Any bank reference will need to confirm that the buyers are financially capable of paying the annual 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 service charge figures so that they can pass this information on to the buyers or their lawyers.
• If you hold a share in a the Management Company, you should make sure that you have the original share certificate. Organising a re-issued share certificate is often a lengthy process and frustrates many a Knightsbridge home move. If a reissued share is necessary, do contact the company director and secretary or managing agents (where relevant) for this as soon as possible.
• You may think that you are aware of the number of years left on your lease but it would be advisable verify this via your solicitors. A buyer’s conveyancer will not be happy to advise their client to where the remaining number of years is less than 75 years. It is therefore essential at an as soon as possible that you consider whether the lease term for your property needs extending. If it does, contact your solicitors before you put your premises on the market for sale.

I inherited a garden flat in Knightsbridge. Given that I can not reach agreement with the landlord, can the Leasehold valuation Tribunal determine the sum payable for the purchase of the freehold?

Most definitely. We can put you in touch with a Knightsbridge conveyancing firm who can help.

An example of a Lease Extension decision for a Knightsbridge premises is Flat 3 47 Cadogan Square in December 2010. the Tribunal determined that the premium payable to the landord by the leaseholder for the lease extension was £732,935 This case affected 1 flat. The the unexpired residue of the current lease was 13.33 years.

Leasehold Conveyancing in Knightsbridge - A selection of Queries Prior to Purchasing

On the whole the outlay for major works are not included within maintenance charges, although some managing agents in Knightsbridge obliged leaseholders to contribute towards a reserve fund and this is used to offset against larger repairs or maintenance.