Shoreditch leasehold conveyancing: Q and A’s
I am intending to rent out my leasehold apartment in Shoreditch. Conveyancing solicitor who did the purchase is retired - so can't ask her. Is permission from the freeholder required?
Your lease dictates relations between the landlord and you the leaseholder; specifically, it will set out if subletting is prohibited, or permitted but only subject to certain conditions. The accepted inference is that if the lease contains no specific ban or restriction, subletting is permitted. Most leases in Shoreditch do not prevent strict prohibition on subletting – such a provision would undoubtedly devalue the property. In most cases there is simply a requirement that the owner notifies the freeholder, possibly sending a duplicate of the sublease.
Looking forward to sign contracts shortly on a ground floor flat in Shoreditch. Conveyancing solicitors inform me that they are sending me a report within the next couple of days. Are there areas in the report that I should be focusing on?
Your report on title for your leasehold conveyancing in Shoreditch should include some of the following:
- The total extent of the premises. This will be the flat itself but might include a roof space or basement if appropriate.
I am a negotiator for a reputable estate agent office in Shoreditch where we see a number of leasehold sales jeopardised as a result of leases having less than 80 years remaining. I have received contradictory information from local Shoreditch conveyancing firms. Could you confirm whether the vendor of a flat can start the lease extension process for the buyer?
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 has to be done prior to, or at the same time as 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 appointing a Shoreditch conveyancing firm to carry out our lease extension conveyancing?
If you are instructing a property lawyer for lease extension works (regardless if they are a Shoreditch conveyancing practice) it is imperative that he or she should be familiar with the legislation and specialises in this area of conveyancing. We suggested that you speak with several firms including non Shoreditch conveyancing practices before you instructing a firm. Where the conveyancing practice is ALEP accredited then so much the better. Some following of questions might be of use:
- How familiar is the practice with lease extension legislation?
Can you provide any top tips for leasehold conveyancing in Shoreditch with the purpose of expediting the sale process?
- A significant proportion of the frustration in leasehold conveyancing in Shoreditch can be reduced if you instruct lawyers as soon as your agents start marketing the property and request that they start to collate the leasehold information needed by the buyers lawyers.
- If you have carried out any alterations to the premises would they have required Landlord’s permission? In particular have you installed wooden flooring? Most leases in Shoreditch state that internal structural alterations or laying down wooden flooring require a licence issued by the Landlord acquiescing to such works. Should you fail to have the paperwork in place you should not contact the landlord without checking with your lawyer in the first instance.
Following months of negotiations we are unable to agree with our landlord on how much the lease extension should cost for our flat in Shoreditch. Can we issue an application to the Residential Property Tribunal Service?
You certainly can. We are happy to put you in touch with a Shoreditch conveyancing firm who can help.
An example of a Lease Extension case for a Shoreditch flat is 137 & 139 Haberdasher Street in December 2013. The Tribunal determines in accordance with section 48 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 that the premium for the extended lease for each Property should be £12,350.00. This case affected 2 flats. The the number of years remaining on the existing lease(s) was 72.39 years.
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