Questions and Answers: Nine Elms leasehold conveyancing
I’m about to sell my 2 bed apartment in Nine Elms.Conveyancing solicitors are to be appointed soon but I have just had a half-yearly service charge invoice – Do I pay up?
Your conveyancing lawyer is likely to suggest that you should clear 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 unless 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. This will smooth the conveyancing process.
I've found a house that seems to tick a lot of boxes, at a great price which is making it more attractive. I have since found out that the title is leasehold as opposed to freehold. I am assuming that there are particular concerns purchasing a house with a leasehold title in Nine Elms. Conveyancing advisers have are about to be instructed. Will they explain the issues?
Most houses in Nine Elms are freehold rather than leasehold. In this scenario it’s worth having a local conveyancer used to dealing with such properties who can help the conveyancing process. We note that you are purchasing in Nine Elms in which case you should be looking for a Nine Elms conveyancing solicitor and be sure that they are used to transacting on leasehold houses. First you will need to check the unexpired lease term. As a leaseholder you will not be entirely free to do whatever you want with the house. The lease comes with conditions for example requiring the landlord’spermission to conduct alterations. It may be necessary to pay a contribution towards the maintenance of the estate where the property is located on an estate. Your solicitor will appraise you on the various issues.
I work for a long established estate agent office in Nine Elms where we see a number of flat sales jeopardised as a result of leases having less than 80 years remaining. I have been given contradictory information from local Nine Elms conveyancing solicitors. Please can you shed some light as to whether the vendor of a flat can commence the lease extension formalities for the purchaser on completion of the sale?
As long as 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 buyer can avoid having to wait 2 years to extend their lease. 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 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 provide any top tips for leasehold conveyancing in Nine Elms from the point of view of speeding up the sale process?
- Much of the frustration in leasehold conveyancing in Nine Elms can be reduced if you get in touch lawyers the minute your agents start marketing the property and request that they start to put together the leasehold documentation needed by the purchasers’ lawyers.
- Many freeholders or Management Companies in Nine Elms charge for supplying management packs for a leasehold premises. You or your lawyers should discover the fee that they propose to charge. The management information can be applied for as soon as you have a buyer, thus reducing delays. The typical amount of time it takes to obtain the necessary information is three weeks. It is the most frequent reason for frustration in leasehold conveyancing in Nine Elms.
- In the event that you altered the property did you need the Landlord’s approval? In particular have you installed wooden flooring? Most leases in Nine Elms state that internal structural changes or addition of wooden flooring necessitate a licence from the Landlord acquiescing to such changes. Where you fail to have the paperwork to hand do not contact the landlord without contacting your solicitor in advance.
- If you are supposed to have a share in the freehold, you should ensure that you are holding the original share document. Arranging a replacement share certificate can be a lengthy process and slows down many a Nine Elms home move. If a duplicate share certificate is necessary, do contact the company officers 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 wise to double-check via your conveyancers. A purchaser's conveyancer will not be happy to advise their client to where the lease term is below 75 years. In the circumstances it is important at an early stage that you identify 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.
All being well we will complete our sale of a £ 150000 garden flat in Nine Elms next Tuesday . The freeholder has quoted £<Macro 'feeRangeWithVAT'> for Certificate of Compliance, building insurance schedule and 3 years statements of service charge. Is it legal for a freeholder to charge such fees for a flat conveyance in Nine Elms?
For the majority of leasehold sales in Nine Elms conveyancing will involve, questions about the management of a building inevitably needing to be answered directly by the freeholder or its agent, this includes :
- Completing pre-contract enquiries
- Where consent is required before sale in Nine Elms
- Copies of the building insurance and schedule
- Deeds of covenant upon sale
- Registering of the assignment of the change of lessee after a sale
We have reached the end of our tether in negotiating a lease extension in Nine Elms. Can the Leasehold Valuation Tribunal adjudicate on premiums?
if there is a missing freeholder or where there is dispute about the premium for a lease extension, under the relevant legislation it is possible to make an application to the LVT to assess the sum to be paid.
An example of a Lease Extension decision for a Nine Elms property 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 was in relation to 1 flat. The the unexpired residue of the current lease was 57.06 years.
Nine Elms Leasehold Conveyancing - A selection of Queries Prior to Purchasing
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What is the name of the managing agents?