South Norwood leasehold conveyancing: Q and A’s
I am in need of some leasehold conveyancing in South Norwood. Before diving in I require certainty as to the remaining lease term.
If the lease is recorded at the land registry - and most are in South Norwood - then the leasehold title will always include the basic details of the lease, namely the date; the term; and the original parties. From a conveyancing perspective such details then enable any prospective buyer and lender to confirm that any lease they are looking at is the one relevant to that title.For any other purpose, such as confirming how long the term was granted for and calculating what is left, then the register should be sufficient on it's own.
My wife and I may need to sub-let our South Norwood basement flat temporarily due to taking a sabbatical. We used a South Norwood conveyancing firm in 2004 but they have closed and we did not have the foresight to get any advice as to whether the lease prohibits the subletting of the flat. How do we find out?
A lease governs relations between the freeholder 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. The majority of leases in South Norwood do not contain an absolute prevention of subletting – such a provision would adversely affect the market value the property. Instead, there is usually a basic requirement that the owner notifies the freeholder, possibly supplying a duplicate of the tenancy agreement.
I am hoping to exchange soon on a garden flat in South Norwood. Conveyancing solicitors have said that they are sending me a report next week. Are there areas in the report that I should be focusing on?
The report on title for your leasehold conveyancing in South Norwood should include some of the following:
- You should receive a copy of the lease
I am attracted to a couple of apartments in South Norwood both have about forty five years remaining on the leases. Will this present a problem?
There is no doubt about it. A leasehold apartment in South Norwood is a wasting asset as a result of the shortening lease. The closer the lease gets to zero years unexpired, the more it reduces the salability of the property. For most purchasers and mortgage companies, leases with less than eighty years become less and less attractive. On a more positive note, leaseholders can extend their leases by serving a Section 42 Notice. One stipulation is that they must have owned the premises for two years (unlike a Section 13 notice for purchasing the freehold, when leaseholders can participate from day one of ownership). When successful, they will have the right to an extension of 90 years to the current term and ground rent is effectively reduced to zero. Before moving forward with a purchase of property with a short lease term remaining you should talk to a solicitor specialising in lease extensions and leasehold enfranchisement. We are are happy to put you in touch with South Norwood conveyancing experts who will explain the options available to you during an initial telephone conversation free of charge. A more straightforward and quicker method of extending would be to contact your landlord directly and sound him out on the prospect of extending the lease You may find he or she is happy to negotiate informally and willing to consider your offer straight off, without having to involve anyone else. This will save you time and money and it could help you reach a lower price on the lease. You need to ensure that any new terms represent good long-term value compared with the standard benefits of the Section 42 Notice and that onerous clauses are not inserted into any redrafting of the lease.
Can you provide any advice for leasehold conveyancing in South Norwood with the intention of speeding up the sale process?
- Much of the delay in leasehold conveyancing in South Norwood can be reduced if you instruct lawyers the minute you market your property and ask them to collate the leasehold documentation needed by the purchasers’ 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? South Norwood leases often stipulate that internal structural changes or installing wooden flooring necessitate a licence issued by the Landlord consenting to such changes. If you dont have the paperwork in place you should not contact the landlord without checking with your solicitor before hand.
I have had difficulty in trying to purchase the freehold in South Norwood. Can this matter be resolved via the Leasehold Valuation Tribunal?
Most certainly. We are happy to put you in touch with a South Norwood conveyancing firm who can help.
An example of a Lease Extension decision for a South Norwood flat is Flats 55, 67 & 70 Melbourne Court Anerley Road in July 2013. The tribunal calculated that the premium for the extended lease at £48,366.00 for at 55, and £88,329.00 for ats 67 and 70 combined. This case affected 1 flat. The unexpired term was 26.38 years.