I am hoping to put an offer on a small detached house that seems to meet my requirements, at a great price which is making it all the more appealing. I have subsequently been informed that the title is leasehold as opposed to freehold. I am assuming that there are particular concerns buying a house with a leasehold title in Mitcham. Conveyancing lawyers have are about to be instructed. Will my lawyers set out the implications of buying a leasehold house in Mitcham ?

The majority of houses in Mitcham are freehold rather than leasehold. This is one of the situations where having a local solicitor who is familiar with the area can assist with the conveyancing process. We note that you are buying in Mitcham in which case you should be shopping around for a Mitcham conveyancing practitioner and check that they have experience in transacting on leasehold houses. First you will need to check the unexpired lease term. Being a leaseholder you will not be at liberty to do whatever you want to the property. The lease will likely included provisions for example requiring the landlord’spermission to carry out alterations. You may also be required to pay a maintenance charge towards the maintenance of the communal areas where the house is located on an estate. Your solicitor will appraise you on the various issues.

Last month I purchased a leasehold flat in Mitcham. Am I liable to pay service charges for periods before completion of my purchase?

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. 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).

What advice can you give us when it comes to choosing a Mitcham conveyancing firm to carry out our lease extension conveyancing?

When appointing a property lawyer for lease extension works (regardless if they are a Mitcham conveyancing practice) it is imperative that they be familiar with the legislation and specialises in this area of conveyancing. We recommend that you talk with two or three firms including non Mitcham conveyancing practices prior to instructing a firm. If the firm is ALEP accredited then so much the better. Some following of questions could be useful:

• If the firm is not ALEP accredited then what is the reason?
• How many lease extensions have they conducted in Mitcham in the last twenty four months?

We expect to complete our sale of a £ 350000 flat in Mitcham in just under a week. The freeholder has quoted £<Macro 'feeRangeWithVAT'> for Certificate of Compliance, insurance certificate and 3 years statements of service charge. Is it legal for a freeholder to charge such fees for a leasehold conveyance in Mitcham?

Mitcham conveyancing on leasehold flats usually involves fees being levied by landlords agents :

• Answering pre-contract enquiries
• Where consent is required before sale in Mitcham
• Supplying insurance information
• Deeds of covenant upon sale
• Registering of the assignment of the change of lessee after a sale

Your conveyancer will have no control over the level of the charges for this information but the average costs for the information for Mitcham leasehold premises is £350. For Mitcham conveyancing transactions it is customary for the seller to pay for these costs. The landlord or their agents are under no legal obligation to answer such questions most will be willing to do so - albeit often at exorbitant prices where the fees bear little relation to the work involved. Unfortunately there is no law that requires fixed charges for administrative tasks. Neither is there any legal time frame by which they are obliged to provide the information.

I have attempted and failed to negotiate with my landlord for a lease extension without getting anywhere. Can the Leasehold Valuation Tribunal decide on such issues? Can you recommend a Mitcham conveyancing firm to act on my behalf?

Most definitely. We are happy to put you in touch with a Mitcham conveyancing firm who can help.

An example of a Freehold Enfranchisement case for a Mitcham residence is 50 & 52 Southcroft Road in September 2013. The tribunals own valuation determined that the premium payable should be £29,000 This case related to 2 flats. The unexpired lease term was 86.11 and 60.64.

Are there common deficiencies that you encounter in leases for Mitcham properties?

There is nothing unique about leasehold conveyancing in Mitcham. Most leases is drafted differently and legal mistakes in the legal wording can sometimes mean that certain provisions 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 building
• Insurance obligations
• Clauses dealing with recovering service charges for expenditure on the building or common parts.
• Service charge per centages that don't add up correctly leaving a shortfall

You could encounter difficulties when selling your property if you have a defective lease primarily because it impacts on the ability to obtain a mortgage on the property. Lloyds TSB Bank, Bank of Scotland, and Alliance & Leicester all have very detailed conveyancing instructions when it comes to what is expected in a lease. Where a lender has been advised by their lawyers that the lease is defective they may refuse to grant the mortgage, forcing the purchaser to pull out.

Mitcham Leasehold Conveyancing - Sample of Questions you should ask before buying

Best to be warned if window replacement or some other significant cost is coming up that will be shared amongst the tenants and will dramatically increase the the maintenance costs or necessitate a specific invoice. Its a good idea to discover as much as possible about the company managing the building as they will either make your life much easier or problematic. Being a leasehold owner you will be in the clutches of the managing agents from a financial perspective and when it comes to every day matters like the upkeep of the communal areas. Enquire of other people if they are happy with them. Finally, be sure you discover the dates that you are obliged pay the service charge to the appropriate party and precisely how they are spending the funds.