Estate agents have just been given the go-ahead to market my 2 bed apartment in Purley.Conveyancing is yet to be initiated but I have just received a yearly service charge invoice – should I leave it to the buyer to sort out?

It best that you discharge the invoice 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 Purley. Conveyancing and Chelsea Building Society mortgage went though with no issue. I have received a letter from someone saying they have taken over the reversionary interest in the property. Attached was a demand for arrears of ground rent dating back to 1992. The conveyancing solicitor in Purley who previously acted has long since retired.What should I do?

First make enquiries of the Land Registry to make sure that the individual claiming to own the freehold is in fact the new freeholder. You do not need to incur the fees of a Purley conveyancing firm to do this as you can do this on the Land Registry website for a few pound. Rest assured that in any event, even if this is the rightful freeholder, under the Limitation Act 1980 no more than 6 years of rent can be collected.

I've recently bought a leasehold house in Purley. Do I have any liability for 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 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).

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

When appointing a conveyancer for your lease extension (regardless if they are a Purley conveyancing practice) 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 Purley conveyancing practices before you instructing a firm. Where the conveyancing practice is ALEP accredited then so much the better. Some following of questions could be of use:

• How experienced is the practice with lease extension legislation?
• What are the costs for lease extension work?

Do you have any advice for leasehold conveyancing in Purley with the intention of expediting the sale process?

• A significant proportion of the delay in leasehold conveyancing in Purley can be avoided if you instruct lawyers as soon as you market your property and request that they start to collate the leasehold documentation needed by the purchasers’ conveyancers.
• In the event that you altered the property did you need the Landlord’s consent? In particular have you laid down wooden flooring? Purley leases often stipulate that internal structural alterations or installing wooden flooring calls for a licence issued by the Landlord acquiescing to such alterations. Where you dont have the paperwork to hand you should not communicate with the landlord without checking with your solicitor in the first instance.
• A minority of Purley leases require Landlord’s consent to the sale and approval of the buyers. If this applies to your lease, you should 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 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 actual amount of the service charge so that they can pass this information on to the purchasers or their solicitors.
• If there is a history of any disputes with your freeholder or managing agents it is very important that these are settled before the property is marketed. The purchasers and their solicitors will be warry about purchasing a property where a dispute is unsettled. You may need to swallow your pride and discharge any arrears of service charge or resolve the dispute prior to completion of the sale. It is therefore preferable to have any dispute settled ahead of the contract papers being issued to the buyers’ solicitors. You are still duty bound to disclose particulars of the dispute to the purchasers, but it is better to present the dispute as historic rather than unresolved.
• If you are supposed to have a share in the Management Company, you should ensure that you have the original share document. Organising a replacement share certificate is often a lengthy process and delays many a Purley home move. If a reissued share is necessary, do contact the company officers or managing agents (where relevant) for this as soon as possible.

Having spent years of correspondence we simply can't agree with our landlord on how much the lease extension should cost for our flat in Purley. Can we issue an application to the Residential Property Tribunal Service?

Where there is a missing landlord or where there is disagreement about what the lease extension should cost, under the Leasehold Reform, Housing and Urban Development Act 1993 you can apply to the First-tier Tribunal (Property Chamber) to decide the amount due.

An example of a Freehold Enfranchisement decision for a Purley flat is The Woodlands 95 Purley Park Road in April 2009. The Tribunals own valuation produced the fi
gure of £37,912. This case was in relation to 6 flats. The remaining number of years on the lease was 78.32 years.

Purley Leasehold Conveyancing - A selection of Queries before Purchasing

The answer will be helpful as a) areas could result in problems for the building as the communal areas may begin to deteriorate where services are not paid for b) if the tenants have an issue with the managing agents you will want to have complete disclosure Be sure to investigate if there are any onerous prohibitions in the lease. For example it is reasonably common in Purley leases that pets are not allowed in certain buildings in Purley. If you like the flatin Purley but your cat can’t move with you then you will be faced hard determination. It would be wise to discover as much as you can concerning the company managing the block as they will affect your use and enjoyment of the property. As the owner of a leasehold property you will be at the mercy of the managing agents both financially and when it comes to day to day matters such as the cleanliness of the communal areas. Enquire of other people whether they are happy with them. In conclusion, be sure you discover the dates that the service charges are due to the relevant party and specifically how they are spending that money.