Frequently asked questions relating to Soho leasehold conveyancing
I have recently realised that I have 68 years unexpired on my flat in Soho. I am keen to extend my lease but my landlord is can not be found. What are my options?
On the basis that you meet the appropriate requirements, under the Leasehold Reform, Housing and Urban Development Act 1993 you can apply to the County Court for for permission to dispense with the service of the initial notice. This will mean that your lease can be granted an extra 90 years by the Court. However, you will be required to demonstrate that you have used your best endeavours to find the lessor. On the whole an enquiry agent would be useful to conduct investigations and to produce a report to be used as proof that the freeholder is indeed missing. It is wise to seek advice from a property lawyer both on devolving into the landlord’s disappearance and the application to the County Court overseeing Soho.
Looking forward to exchange soon on a garden flat in Soho. Conveyancing solicitors assured me that they are sending me a report on Monday. Are there areas in the report that I should be focusing on?
The report on title for your leasehold conveyancing in Soho should include some of the following:
- The unexpired lease term You should be advised as what happens when the lease expires, and aware of the importance of the 80 year mark
- Setting out your rights in relation to the communal areas in the building.By way of example, does the lease provide for a right of way over a path or staircase?
- You should be told what constitutes a Nuisance in the lease
- An explanation as to the provision in the lease to pay service charges - with regard to both the building, and the more general rights a leaseholder has
- Whether your lease has a provision for a reserve fund?
- Changes to the flat (alterations and additions)
- What options are open to you if a neighbour breach a clause of their lease?
I've recently bought a leasehold house in Soho. Am I liable to pay service charges relating to a period prior to my ownership?
In a situation 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. It is an essential part of leasehold conveyancing for your conveyancer to ensure 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 are your top tips when it comes to appointing a Soho conveyancing firm to deal with our lease extension?
When appointing a conveyancer for your lease extension (regardless if they are a Soho conveyancing firm) it is most important that they be familiar with the legislation and specialises in this area of conveyancing. We suggested that you make enquires with several firms including non Soho conveyancing practices prior to instructing a firm. Where the conveyancing practice is ALEP accredited then that’s a bonus. Some following of questions could be useful:
- How familiar is the practice with lease extension legislation?
- If the firm is not ALEP accredited then what is the reason?
Can you provide any top tips for leasehold conveyancing in Soho with the purpose of saving time on the sale process?
- A significant proportion of the delay in leasehold conveyancing in Soho can be bypassed where you get in touch lawyers the minute you market your property and ask them to collate the leasehold information which will be required by the buyers conveyancers.
- If you have carried out any alterations to the property would they have required Landlord’s permission? In particular have you installed wooden flooring? Most leases in Soho state that internal structural changes or addition of wooden flooring require a licence from the Landlord approving such works. Where you dont have the paperwork to hand you should not contact the landlord without checking with your conveyancer in advance.
- If there is a history of any disputes with your landlord or managing agents it is very important that these are resolved before the property is put on the market. The buyers and their solicitors will be warry about purchasing a flat where there is a current dispute. You may have to bite the bullet and 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 prior to the contract papers being issued to the buyers’ solicitors. You will still have to reveal details of the dispute to the buyers, but it is better to present the dispute as historic rather than ongoing.
- If you hold a share in a the freehold, you should ensure that you are holding the original share certificate. Obtaining a replacement share certificate can be a lengthy formality and slows down many a Soho conveyancing deal. Where a new share certificate is needed, you should approach the company officers or managing agents (if relevant) for this as soon as possible.
- You may think that you are aware of the number of years remaining on your lease but you should verify this by asking your conveyancers. A purchaser's conveyancer will be unlikely to recommend their client to proceed with the purchase of a leasehold property the remaining number of years is below 80 years. It is therefore essential at an early stage that you identify whether the lease for your property needs extending. If it does, contact your solicitors before you put your property on the market for sale.
I have tried to negotiate informally with with my landlord to extend my lease without success. Can a leaseholder make an application to the Leasehold Valuation Tribunal? Can you recommend a Soho conveyancing firm to act on my behalf?
You certainly can. We are happy to put you in touch with a Soho conveyancing firm who can help.
An example of a Freehold Enfranchisement matter before the tribunal for a Soho flat is 20 Avonwick Road in July 2013. The Tribunal was dealing with an application under Section 26 of the Leasehold Reform Housing and Urban Development Act 1993 for a determination of the freehold value of the property. It was concluded that the price to be paid was Fifteen Thousand Nine Hundred and Seventy (£15,970) divided as to £8,200 for Flat 20 and £7,770 for Flat 20A This case affected 1 flat. The the number of years remaining on the existing lease(s) was 73.26 years.
Leasehold Conveyancing in Soho - A selection of Questions you should ask before buying
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Does this lease have in excess of 80 years left?
Please tell me if there are any major works on the horizon that will add a premium to the service costs?