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Any conveyancing practice can theoretically handle your leasehold conveyancing in South Woodford, your mortgage provider may not be willing to work with them if the firm are not on their list of approved solicitors for conveyancing

Questions and Answers: South Woodford leasehold conveyancing

I've recently bought a leasehold property in South Woodford. Do I have any liability for service charges for periods before my ownership?

In a situation where the service charge has already been demanded from the previous owner and they have not paid you would not usually be personally liable for the arrears. However, 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).

I am a negotiator for a long established estate agency in South Woodford where we see a few leasehold sales derailed due to short leases. I have been given contradictory information from local South Woodford conveyancing solicitors. Could you shed some light as to whether the vendor of a flat can instigate the lease extension formalities for the purchaser on completion of the sale?

As long as the seller has owned the lease 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. The benefit of this is that the proposed purchaser need not have to sit tight for 2 years to extend their lease. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed before, or at the same time as completion of the sale.

Alternatively, it may be possible to agree the lease extension with the freeholder 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 buyer.

What are your top tips when it comes to finding a South Woodford conveyancing practice to deal with our lease extension?

If you are instructing a conveyancer for your lease extension (regardless if they are a South Woodford conveyancing firm) it is essential that they be familiar with the legislation and specialises in this area of work. We recommend that you speak with several firms including non South Woodford conveyancing practices before you instructing a firm. Where the conveyancing practice is ALEP accredited then that’s a bonus. Some following of questions could be useful:

  • How experienced is the practice with lease extension legislation?
  • Can they put you in touch with client in South Woodford who can give a testimonial?

    • Can you provide any advice for leasehold conveyancing in South Woodford from the perspective of saving time on the sale process?

    • A significant proportion of the delay in leasehold conveyancing in South Woodford can be bypassed where you instruct lawyers the minute your agents start marketing the property and ask them to collate the leasehold information which will be required by the buyers conveyancers.
    • Many freeholders or Management Companies in South Woodford levy fees for providing management packs for a leasehold homes. You or your lawyers should find out the actual amount of the charges. The management pack sought on or before finding a buyer, thus accelerating the process. The average time it takes to obtain the necessary information is three weeks. It is the most common reason for frustration in leasehold conveyancing in South Woodford.
  • Some South Woodford leases require Landlord’s consent to the sale and approval of the buyers. If this is the case, it would be prudent to place the estate agents on notice to make sure that the purchasers obtain financial (bank) and professional references. The bank reference will need to confirm that the buyers are 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 buyers or their lawyers.
  • If you have had any disputes with your landlord 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 a dispute is unsettled. You may have to bite the bullet and pay 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 prior to 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 present the dispute as historic rather than unsettled.
  • If you hold a share in a the Management Company, you should ensure that you have the original share certificate. Obtaining a replacement share certificate is often a lengthy process and delays many a South Woodford home move. Where a new share certificate is necessary, do contact the company officers or managing agents (where applicable) for this at the earliest opportunity.

    • All being well we will complete the sale of our £350000 apartment in South Woodford on Thursday in a week. The management company has quoted £420 for Certificate of Compliance, building insurance schedule and 3 years service charge statements. Is the landlord entitled to charge exorbitant fees for a leasehold conveyance in South Woodford?

    South Woodford conveyancing on leasehold flats more often than not necessitates the buyer’s solicitor submitting questions for the landlord to answer. Although the landlord is not legally bound to address such questions most will be content to assist. They are at liberty invoice a reasonable administration fee for responding to enquiries or supplying documentation. There is no set fee. The average fee for the paperwork that you are referring to is £350, in some transactions it is above £800. The management information fee required by the landlord must be accompanied by a synopsis of entitlements and obligations in respect of administration charges, without which the charge is not strictly payable. In reality you have no option but to pay whatever is demanded should you wish to complete the sale of your home.

    I have given up seeking a lease extension in South Woodford. Can this matter be resolved via the Leasehold Valuation Tribunal?

    in cases where there is a absentee freeholder or where there is disagreement about the premium for a lease extension, under the relevant statutes you can apply to the Leasehold Valuation Tribunal to assess the amount due.

    An example of a Lease Extension case for a South Woodford premises is 135 Maybank Road in January 2013. The Tribunal determined that the price to be paid by the tenants for the grant of a new lease is £10,592 This case affected 1 flat. The unexpired lease term was 71.2 years.

    Other Topics

    Lease Extensions in South Woodford