Looking forward to exchange soon on a garden flat in Shoreditch. Conveyancing lawyers inform me that they report fully tomorrow. What should I be looking out for?

Your report on title for your leasehold conveyancing in Shoreditch should include some of the following:

• You should receive a copy of the lease

The length of the lease term You should be advised as what happens when the lease ends, and aware of the importance of the 80 year mark

Defining your legal entitlements in respect of the communal areas in the building.E.G., does the lease include a right of way over a path or staircase?

Whether the lease restricts you from subletting the property, or working from home

You should have a good understanding of the insurance provisions

The landlord’s rights to access the flat you be made aware that your landlord has rights of access and I know how much notice s/he must provide.

The landlord’s obligations to repair and maintain the building. It is important that you know who is responsible for the repair and maintenance of every part of the building For a comprehensive list of information to be contained in your report on your leasehold property in Shoreditch please ask your conveyancer in advance of your conveyancing in Shoreditch

I am tempted by the attractive purchase price for a couple of maisonettes in Shoreditch both have in the region of 50 years remaining on the lease term. Should I regard a short lease as a deal breaker?

A lease is a right to use the premises for a prescribed time frame. As the lease shortens the marketability of the lease decreases and it becomes more costly to extend the lease. This is why it is advisable to extend the lease term. More often than not it is difficulties arise selling premises with a short lease because mortgage lenders less inclined to grant a loan on properties of this type. Lease extension can be a protracted process. We recommend you seek professional assistance from a solicitor and surveyor with experience in this arena

What advice can you give us when it comes to appointing a Shoreditch conveyancing practice to deal with our lease extension?

When appointing a conveyancer for your lease extension (regardless if they are a Shoreditch conveyancing practice) it is most important that they be familiar with the legislation and specialises in this area of work. We recommend that you make enquires with several firms including non Shoreditch conveyancing practices prior to instructing a firm. Where the conveyancing practice is ALEP accredited then so much the better. Some following of questions might be of use:

• How many lease extensions have they completed in Shoreditch in the last twenty four months?

Can they put you in touch with client in Shoreditch who can give a testimonial?

Can you provide any top tips for leasehold conveyancing in Shoreditch with the aim of expediting the sale process?

• A significant proportion of the delay in leasehold conveyancing in Shoreditch can be reduced where you appoint lawyers as soon as you market your property and request that they start to collate the leasehold documentation which will be required by the buyers lawyers.
• Many landlords or managing agents in Shoreditch levy fees for supplying management packs for a leasehold property. You or your lawyers should discover the fee that they propose to charge. The management pack sought as soon as you have a buyer, thus reducing delays. The typical amount of time it takes to receive management information is three weeks. It is the most usual reason for delay in leasehold conveyancing in Shoreditch.

A minority of Shoreditch leases require Licence to Assign from the landlord. If this is the case, you should notify your estate agents to make sure that the purchasers obtain bank and professional references. The bank reference should make it clear that the buyer is financially capable of paying the yearly 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 you have had conflict with your freeholder or managing agents it is essential that these are resolved before the property is put on the market. The buyers and their solicitors will be reluctant to purchase a property where there is a current dispute. You may need to swallow your pride and discharge any arrears of service charge or settle the dispute prior to the buyers completing the purchase. 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 buyers, but it is clearly preferable to present the dispute as over rather than unsettled.

If you are supposed to have a share in the freehold, you should make sure that you are holding the original share certificate. Arranging a replacement share certificate is often a lengthy formality and frustrates many a Shoreditch home move. Where a new share certificate is necessary, do contact the company officers or managing agents (if relevant) for this as soon as possible.

We expect to complete the disposal of our £200000 apartment in Shoreditch in 5 days. The landlords agents has quoted £348 for Certificate of Compliance, insurance certificate and 3 years statements of service charge. Is the landlord entitled to charge an administration fee for a flat conveyance in Shoreditch?

For the majority of leasehold sales in Shoreditch conveyancing will involve, questions about the management of a building inevitably needing to be answered directly by the freeholder or its agent, this includes :

• Addressing pre-exchange questions
• Where consent is required before sale in Shoreditch
• Copies of the building insurance and schedule
• Deeds of covenant upon sale
• Registering of the assignment of the change of lessee after a sale

Your conveyancer will have no control over the level of the charges for this information but the average costs for the information for Shoreditch leasehold premises is £350. For Shoreditch conveyancing transactions it is customary for the seller to pay for these costs. The landlord or their agents are under no legal obligation to answer such questions most will be willing to do so - albeit often at exorbitant prices where the fees bear little relation to the work involved. Unfortunately there is no law that requires fixed charges for administrative tasks. Neither is there any legal time frame by which they are required to supply the information.

I have tried to negotiate informally with with my landlord to extend my lease without success. Can the Leasehold Valuation Tribunal adjudicate on such issues? Can you recommend a Shoreditch conveyancing firm to help?

Where there is a missing freeholder or where there is dispute about what the lease extension should cost, under the relevant legislation it is possible to make an application to the First-tier Tribunal (Property Chamber) to calculate the price payable.

An example of a Lease Extension case for a Shoreditch residence 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 unexpired residue of the current lease was 72.39 years.

Other Topics

Lease Extensions in Shoreditch