Estate agents have just been given the go-ahead to market my basement flat in Rotherhithe.Conveyancing solicitors are to be appointed soon but I have just had a yearly maintenance charge demand – Do I pay up?

The sensible thing to do is pay 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 management companies 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. This will smooth the conveyancing process.

I am a negotiator for a reputable estate agent office in Rotherhithe where we see a number of leasehold sales jeopardised due to leases having less than 80 years remaining. I have received conflicting advice from local Rotherhithe conveyancing firms. Please can you clarify whether the owner of a flat can initiate the lease extension formalities for the purchaser on completion of the sale?

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. The benefit of this is 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.

Alternatively, it may be possible 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 Rotherhithe conveyancing firm to deal with our lease extension?

When appointing a solicitor for your lease extension (regardless if they are a Rotherhithe conveyancing practice) it is essential that they be familiar with the legislation and specialises in this area of work. We recommend that you talk with two or three firms including non Rotherhithe conveyancing practices prior to instructing a firm. If the firm is ALEP accredited then that’s a bonus. Some following of questions could be helpful:

• How many lease extensions has the firm conducted in Rotherhithe in the last year?
• What are the costs for lease extension work?

Can you provide any top tips for leasehold conveyancing in Rotherhithe from the point of view of expediting the sale process?

• Much of the frustration in leasehold conveyancing in Rotherhithe can be bypassed if you get in touch lawyers the minute your agents start marketing the property and ask them to collate the leasehold information which will be required by the buyers lawyers.
• The majority landlords or managing agents in Rotherhithe charge for providing management packs for a leasehold homes. You or your lawyers should enquire as to the actual amount of the charges. The management information sought on or before finding a buyer, thus reducing delays. The average time it takes to obtain the necessary information is three weeks. It is the most frequent reason for delay in leasehold conveyancing in Rotherhithe.
• In the event that you altered the property did you need the Landlord’s permission? Have you, for example laid down wooden flooring? Most leases in Rotherhithe state that internal structural changes or laying down wooden flooring require a licence from the Landlord consenting to such works. Should you dont have the paperwork in place you should not contact the landlord without checking with your conveyancer first.
• If there is a history of conflict with your landlord or managing agents it is very important that these are settled prior to the flat being put on the market. The buyers and their solicitors will be reluctant to purchase a property where there is a current dispute. You will have to accept that you will have to pay 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 details of the dispute to the buyers, but it is clearly preferable to reveal the dispute as historic rather than ongoing.
• You believe that you know the number of years remaining on your lease but it would be wise to double-check via your lawyers. A purchaser's conveyancer will not be happy to advise their client to proceed with the purchase of a leasehold property the remaining number of years is under 75 years. In the circumstances it is essential 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.

Completion in due on the disposal of our £ 475000 maisonette in Rotherhithe next week. The managing agents 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 Rotherhithe?

Rotherhithe conveyancing on leasehold flats normally involves the purchaser’s lawyer sending enquiries for the landlord to answer. Although the landlord is under no legal obligation to address such questions the majority will be willing to assist. They are at liberty charge a reasonable charge for answering enquiries or supplying documentation. There is no upper cap for such fees. The average costs for the paperwork that you are referring to is over three hundred pounds, in some transactions it exceeds £800. The administration charge required by the landlord must be accompanied by a summary of entitlements and obligations in respect of administration fees, without which the charge is not strictly payable. Reality however dictates that one has no option but to pay whatever is requested of you if you want to complete the sale of your home.

I have attempted and failed to negotiate with my landlord for a lease extension without any joy. Can the Leasehold Valuation Tribunal decide on such matters? Can you recommend a Rotherhithe conveyancing firm to help?

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

An example of a Freehold Enfranchisement decision for a Rotherhithe property is 12, 14 & 16 Hull Close in May 2010. the Tribunal determined that the premium payable for the acquisition of the freehold to the subject premises was the sum of £18,300 This case was in relation to 3 flats. The the unexpired residue of the current lease was 101.61 years.

Rotherhithe Leasehold Conveyancing - Sample of Queries before Purchasing

Is anyone aware of any major works on the horizon that could add a premium to the service costs? Best to be warned whether a new roof is being put on or some other significant cost is coming up that will be shared by the tenants and could well dramatically increase the the maintenance charges or necessitate a specific invoice.