I am hoping to put an offer on a small detached house that appears to tick a lot of boxes, at a reasonable price which is making it more attractive. I have since found out that it's a leasehold rather than freehold. I would have thought that there are issues buying a leasehold house in St Luke's. Conveyancing advisers have are about to be appointed. Will my lawyers set out the risks of buying a leasehold house in St Luke's ?

Most houses in St Luke's are freehold and not leasehold. This is one of the situations where having a local solicitor used to dealing with such properties who can help the conveyancing process. We note that you are purchasing in St Luke's so you should seriously consider shopping around for a St Luke's conveyancing practitioner and check that they are used to transacting on leasehold houses. First you will need to check the number of years remaining. As a leaseholder you will not be at liberty to do whatever you want with the house. The lease comes with conditions such as obtaining the landlord’spermission to conduct changes to the property. It may be necessary to pay a service charge towards the upkeep of the communal areas where the house is part of an estate. Your solicitor should report to you on the legal implications.

I work for a reputable estate agent office in St Luke's where we have experienced a number of leasehold sales jeopardised due to short leases. I have been given contradictory information from local St Luke's conveyancing firms. Can you clarify whether the owner of a flat can initiate the lease extension process for the buyer?

As long as the seller has been the owner 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 buyer can avoid having to wait 2 years for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment has to be done before, or at the same time as completion of the sale.

Alternatively, it may be possible to extend the lease informally by agreement with the landlord 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.

Can you offer any advice when it comes to choosing a St Luke's conveyancing practice to carry out our lease extension conveyancing?

When appointing a solicitor for lease extension works (regardless if they are a St Luke's conveyancing practice) it is most important that they be familiar with the legislation and specialises in this area of work. We recommend that you speak with two or three firms including non St Luke's conveyancing practices prior to instructing a firm. If the firm is ALEP accredited then so much the better. Some following of questions might be useful:

• How many lease extensions have they carried out in St Luke's in the last 12 months?
• Can they put you in touch with client in St Luke's who can give a testimonial?

Do you have any advice for leasehold conveyancing in St Luke's from the point of view of saving time on the sale process?

• A significant proportion of the frustration in leasehold conveyancing in St Luke's can be reduced if you instruct lawyers as soon as you market your property and ask them to collate the leasehold information needed by the buyers conveyancers.
• In the event that you altered the property did you need the Landlord’s consent? In particular have you installed wooden flooring? Most leases in St Luke's state that internal structural alterations or installing wooden flooring necessitate a licence from the Landlord approving such alterations. Should you fail to have the approvals to hand do not contact the landlord without contacting your lawyer first.
• Some St Luke's leases require Licence to Assign from the landlord. If this is the case, it would be prudent to notify your estate agents to make sure that the purchasers put in hand bank and professional references. Any bank reference should make it clear that the buyer is financially capable of paying the annual 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 service charge figures so that they can pass this information on to the purchasers or their lawyers.
• If you have had any disputes with your freeholder or managing agents it is essential that these are resolved prior to the flat being put on the market. The purchasers and their solicitors will be reluctant to purchase a flat where there is an ongoing dispute. You may have to bite the bullet and pay any arrears of service charge or resolve 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 will still have to reveal details of the dispute to the buyers, but it is better to present the dispute as historic as opposed to ongoing.
• If you hold a share in a the Management Company, you should ensure that you hold the original share document. Obtaining a new share certificate can be a lengthy process and slows down many a St Luke's home move. Where a new share is required, do contact the company director and secretary or managing agents (if relevant) for this at the earliest opportunity.

I have tried to negotiate informally with with my landlord for a lease extension without success. Can the Leasehold Valuation Tribunal adjudicate on such matters? Can you recommend a St Luke's conveyancing firm to act on my behalf?

Absolutely. We are happy to put you in touch with a St Luke's conveyancing firm who can help.

An example of a Lease Extension decision for a St Luke's 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 remaining number of years on the lease was 72.39 years.

What are the frequently found defects that you witness in leases for St Luke's properties?

There is nothing unique about leasehold conveyancing in St Luke's. Most leases is drafted differently and legal mistakes in the legal wording can sometimes mean that certain sections are wrong. The following missing provisions could result in a defective lease:

• A provision to repair to or maintain elements of the property
• A duty to insure the building
• A provision for the recovery of money spent for the benefit of another party.
• Maintenance charge proportions which don’t add up to the correct percentage

You will have a problem when selling your property if you have a defective lease as they can affect a potential buyer’s ability to obtain a mortgage. National Westminster Bank, Barnsley Building Society, and Alliance & Leicester 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 does not cover certain provisions they may refuse to provide security, obliging the buyer to withdraw.

I purchased a 2 bed flat in St Luke's, conveyancing having been completed half a dozen years ago. Can you shed any light on how much the price could be for a 90 year extension to my lease? Equivalent flats in St Luke's with over 90 years remaining are worth £225,000. The average or mid-range amount of ground rent is £45 yearly. The lease comes to an end on 21st October 2089

You have 63 years unexpired we estimate the price of your lease extension to be between £20,000 and £23,000 as well as professional fees.

The suggested premium range that we have given is a general guide to costs for renewing a lease, but we cannot give you the actual costs without more detailed investigations. You should not use the figures in tribunal or court proceedings. There may be other concerns that need to be considered and clearly you want to be as accurate as possible in your negotiations. Please do not move forward placing reliance on this information without first seeking the advice of a professional.