I have just started marketing my ground floor flat in St Johns.Conveyancing has not commenced but I have just received a quarterly maintenance charge demand – should I leave it to the buyer to sort out?

It best that you clear the service charge as normal because all ground rent and service charges will be apportioned on completion, so you will be reimbursed by the buyer for the period running from after the completion date to the next payment date. Most managing agents will not acknowledge the buyer until the service charges have been paid and are up to date so it is important for both buyer and seller for the seller to show that they are up to date. This will smooth the conveyancing process.

I am attracted to a couple of flats in St Johns both have in the region of fifty years left on the lease term. Do I need to be concerned?

A lease is a right to use the property for a period of time. As the lease gets shorter the value of the lease deteriorate and results in it becoming more costly to acquire a lease extension. This is why it is generally wise to extend the lease term. Sometimes it is difficult to sell a property with a short lease as mortgage companies may be unwilling to lend money on properties of this type. Lease enfranchisement can be a difficult process. We recommend you seek professional assistance from a conveyancer and surveyor with experience in this field

I am a negotiator for a busy estate agency in St Johns where we have witnessed a few leasehold sales put at risk as a result of short leases. I have received inconsistent advice from local St Johns conveyancing solicitors. Can you shed some light as to whether the owner of a flat can commence the lease extension process for the purchaser on completion of the sale?

As long as the seller has been the owner for at least 2 years it is possible, to serve a Section 42 notice to start the lease extension process and assign the benefit of the notice to the purchaser. This means 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 has to be done before, or simultaneously with completion of the disposal of the property.

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 purchaser.

What are your top tips when it comes to appointing a St Johns conveyancing firm to deal with our lease extension?

If you are instructing a solicitor for your lease extension (regardless if they are a St Johns conveyancing practice) it is most important that he or she should be familiar with the legislation and specialises in this area of conveyancing. We recommend that you speak with several firms including non St Johns conveyancing practices before you instructing a firm. If the firm is ALEP accredited then that’s a bonus. Some following of questions could be helpful:

• How experienced is the firm with lease extension legislation?
• What are the legal fees for lease extension conveyancing?

I have had difficulty in negotiating a lease extension in St Johns. Can the Leasehold Valuation Tribunal adjudicate on premiums?

if there is a absentee landlord or where there is dispute about the premium for a lease extension, under the Leasehold Reform, Housing and Urban Development Act 1993 you can apply to the Leasehold Valuation Tribunal to calculate the price.

An example of a Lease Extension matter before the tribunal for a St Johns property is 73 Walerand Road in August 2012. the result of the findings of the Tribunal led to a premium to be paid for the extended lease in respect of Flat 73 in the sum of £10,040. The premium applicable in respect of Flat 85 was £5,710. This case related to 2 flats. The the unexpired residue of the current lease was 72 years.

What makes a St Johns lease defective?

Leasehold conveyancing in St Johns is not unique. All leases are unique and drafting errors can result in certain provisions are not included. The following missing provisions could result in a defective lease:

• Repairing obligations to or maintain elements of the building
• Insurance obligations
• A provision for the recovery of money spent for the benefit of another party.
• Service charge per centages that don't add up correctly leaving a shortfall

A defective lease will likely cause problems when trying to sell a property primarily because it impacts on the ability to obtain a mortgage on the property. National Westminster Bank, Barnsley Building Society, and Platform Home Loans Ltd all have express conveyancing instructions when it comes to what is expected in a lease. Where a lender has been advised by their lawyers that the lease is defective they may refuse to grant the mortgage, obliging the buyer to pull out.

Leasehold Conveyancing in St Johns - Sample of Queries Prior to buying

Are there any major works in the planning that will likely increase the maintenance costs? The answer will be useful as a) areas could cause problems in the building as the communal areas may begin to deteriorate where maintenance are not paid for b) if the leaseholders have a dispute with the managing agents you will need to know about it Generally speaking the cost for major works are not included within maintenance charges, albeit that there some managing agents in St Johns obliged leasehold owners to contribute towards a sinking fund and this is used to offset against major works.