Sample questions relating to Nine Elms leasehold conveyancing
I have just started marketing my 2 bed flat in Nine Elms.Conveyancing has not commenced but I have just received a half-yearly maintenance charge invoice – should I leave it to the buyer to sort out?
The sensible thing to do is pay the service charge as normal because all ground rent and service charges will be apportioned on completion, so you will be reimbursed by the buyer for the period running from after the completion date to the next payment date. Most managing agents will not acknowledge the buyer until the service charges have been paid and are up to date so it is important for both buyer and seller for the seller to show that they are up to date. Having a clear account will assist your cause and will leave you no worse off financially.
I own a leasehold house in Nine Elms. Conveyancing and Chelsea Building Society mortgage are in place. I have received a letter from someone claiming to own the reversionary interest in the property. Attached was a demand for arrears of ground rent dating back to 1991. The conveyancing solicitor in Nine Elms who acted for me is not around.Any advice?
First make enquiries of HMLR to be sure that this person is indeed the registered owner of the freehold reversion. There is no need to incur the fees of a Nine Elms conveyancing solicitor to do this as you can do this on the Land Registry website for less than a fiver. You should note that in any event, even if this is the legitimate freeholder, under the Limitation Act 1980 no more than 6 years of rent can be collected.
I've recently bought a leasehold property in Nine Elms. Am I liable to pay service charges relating to a period prior to 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 a negotiator for a busy estate agency in Nine Elms where we see a few leasehold sales derailed due to leases having less than 80 years remaining. I have received conflicting advice from local Nine Elms conveyancing firms. Could you clarify whether the owner of a flat can initiate the lease extension process for the buyer?
Provided that the seller has owned the lease 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. The benefit of this is that the proposed purchaser can avoid having to wait 2 years to extend their lease. Both sets of lawyers will agree to form of assignment. The assignment has to be done before, or simultaneously with 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 purchaser.
Do you have any top tips for leasehold conveyancing in Nine Elms from the perspective of saving time on the sale process?
- A significant proportion of the frustration in leasehold conveyancing in Nine Elms can be bypassed if you appoint lawyers the minute you market your property and ask them to put together the leasehold documentation needed by the buyers conveyancers.
- The majority freeholders or managing agents in Nine Elms levy fees for supplying management packs for a leasehold homes. You or your lawyers should find out the fee that they propose to charge. The management pack can be applied for as soon as you have a buyer, thus reducing delays. The average time it takes to receive management information is three weeks. It is the most frequent cause of frustration in leasehold conveyancing in Nine Elms.
- In the event that you altered the property did you need the Landlord’s consent? Have you, for example laid down wooden flooring? Nine Elms leases often stipulate that internal structural changes or laying down wooden flooring necessitate a licence issued by the Landlord consenting to such works. If you dont have the paperwork in place you should not contact the landlord without contacting your solicitor in the first instance.
- If you are supposed to have a share in the freehold, you should ensure that you hold the original share document. Obtaining a new share certificate is often a time consuming formality and frustrates many a Nine Elms home move. Where a duplicate share is required, you should approach the company officers or managing agents (where applicable) for this at the earliest opportunity.
- You may think that you are aware of the number of years remaining on your lease but you should double-check via your lawyers. A purchaser's lawyer will not be happy to advise their client to to exchange contracts if the remaining number of years is under 75 years. It is therefore essential 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 premises on the market for sale.
I have given up trying to purchase the freehold in Nine Elms. Can this matter be resolved via the Leasehold Valuation Tribunal?
in cases where there is a absentee landlord or if there is disagreement about the premium for a lease extension, under the relevant legislation you can apply to the First-tier Tribunal (Property Chamber) to assess the premium.
An example of a Lease Extension matter before the tribunal for a Nine Elms residence is 150A Albert Palace Mansions Lurline Gardens in July 2013. The Tribunal determined that the premium payable for the new lease of the subject property was £42,069 This case affected 1 flat. The the number of years remaining on the existing lease(s) was 57.06 years.
Nine Elms Leasehold Conveyancing - Sample of Questions you should consider Prior to Purchasing
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For many Nine Elms leaseholds the cost for major works tend not to be included within maintenance charges, although a few managing agents in Nine Elms ask leaseholders to pay into a sinking fund and this is used to offset against major repairs or maintenance.
How many years are left on the lease?