I am a negotiator for a reputable estate agency in New Addington where we see a few leasehold sales jeopardised due to leases having less than 80 years remaining. I have received inconsistent advice from local New Addington conveyancing firms. Could you clarify whether the vendor of a flat can commence 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 commence the lease extension process and assign the benefit of the notice to the purchaser. This means 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 has to be done prior to, or simultaneously with completion of the disposal of the property.

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 purchaser.

What are your top tips when it comes to finding a New Addington conveyancing firm to deal with our lease extension?

If you are instructing a conveyancer for your lease extension (regardless if they are a New Addington conveyancing practice) it is imperative that they be familiar with the legislation and specialises in this area of work. We advise that you talk with two or three firms including non New Addington conveyancing practices prior to instructing a firm. Where the conveyancing practice is ALEP accredited then that’s a bonus. Some following of questions might be useful:

• Can they put you in touch with client in New Addington who can give a testimonial?
• What are the legal fees for lease extension conveyancing?

Do you have any top tips for leasehold conveyancing in New Addington with the aim of expediting the sale process?

• Much of the frustration in leasehold conveyancing in New Addington can be avoided where 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’ lawyers.
• A minority of New Addington leases require Landlord’s consent to the sale and approval of the buyers. If this is the case, it would be prudent to place the estate agents on notice to make sure that the purchasers obtain financial (bank) and professional references. Any 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 service charge figures so that they can pass this information on to the buyers or their lawyers.
• If there is a history of any disputes with your landlord or managing agents it is very important that these are settled prior to the flat being marketed. The purchasers and their solicitors will be concerned about purchasing a flat where there is a current dispute. You will have to accept that you will have to pay 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 prior to the contract papers being issued to the buyers’ solicitors. You are still duty bound to disclose details of the dispute to the buyers, but it is better to present the dispute as historic rather than ongoing.
• If you hold a share in a the freehold, you should ensure that you are holding the original share document. Obtaining a re-issued share certificate is often a time consuming formality and slows down many a New Addington home move. If a reissued share is needed, do contact the company officers or managing agents (if relevant) for this sooner rather than later.
• You may think that you are aware of the number of years remaining on your lease but it would be advisable verify this via your conveyancers. A buyer’s lawyer will be unlikely to recommend their client to proceed with the purchase of a leasehold property the remaining number of years is below 80 years. In the circumstances it is important at an as soon as possible that you identify whether the lease term requires a lease extension. If it does, contact your solicitors before you put your home on the market for sale.

All being well we will complete our sale of a £ 125000 garden flat in New Addington next week. The management company has quoted £<Macro 'feeRangeWithVAT'> for Certificate of Compliance, insurance certificate and 3 years service charge statements. Is it legal for a freeholder to charge such fees for a flat conveyance in New Addington?

New Addington conveyancing on leasehold apartments more often than not requires the buyer’s lawyer sending questions for the landlord to address. Although the landlord is not legally bound to respond to these enquiries most will be willing to do so. They are at liberty levy a reasonable administration fee for responding to questions or supplying documentation. There is no upper cap for such fees. The average fee for the paperwork that you are referring to is over three hundred pounds, in some cases it is in excess of £800. The management information fee required by the landlord must be accompanied by a synopsis of entitlements and obligations in relation to administration fees, without which the charge is not strictly payable. Reality however dictates that one has no choice but to pay whatever is requested of you should you wish to exchange contracts with the buyer.

I have had difficulty in trying to reach an agreement for a lease extension in New Addington. Can this matter be resolved via the Leasehold Valuation Tribunal?

You certainly can. We can put you in touch with a New Addington conveyancing firm who can help.

An example of a Freehold Enfranchisement decision for a New Addington residence is The Woodlands 95 Purley Park Road in April 2009. The Tribunals own valuation produced the fi
gure of £37,912. This case affected 6 flats. The the unexpired term as at the valuation date was 78.32 years.

What are the common problems that you witness in leases for New Addington properties?

Leasehold conveyancing in New Addington is not unique. Most leases are unique and legal mistakes in the legal wording can sometimes mean that certain clauses are erroneous. For example, if your lease is missing any of the following, it could be defective:

• Repairing obligations to or maintain elements of the premises
• A duty to insure the building
• A provision for the recovery of money spent for the benefit of another party.
• Service charge per centages that don't add up correctly leaving a shortfall

A defective lease can cause problems when trying to sell a property primarily because it impacts on the ability to obtain a mortgage on the property. Accord Mortgages Ltd, Norwich and Peterborough Building Society, and Nottingham Building Society all have express conveyancing instructions when it comes to what is expected in a lease. If a mortgage lender believes that the lease does not cover certain provisions they may refuse to provide security, obliging the purchaser to pull out.

I bought a leasehold flat in New Addington, conveyancing was carried out 5 years ago. Can you work out an approximate cost of a lease extension? Corresponding properties in New Addington with over 90 years remaining are worth £210,000. The average or mid-range amount of ground rent is £45 invoiced annually. The lease ends on 21st October 2106

With just 80 years unexpired we estimate the premium for your lease extension to range between £8,600 and £9,800 plus professional fees.

The suggested premium range above a general guide to costs for extending a lease, but we are not able to advice on the actual costs in the absence of detailed investigations. Do not use this information in a Notice of Claim or as an informal offer. There are no doubt other concerns that need to be considered and you obviously want to be as accurate as possible in your negotiations. Please do not move forward placing reliance on this information without first seeking the advice of a professional.