I am tempted by the attractive purchase price for a two flats in Stamford Hill which have approximately fifty years unexpired on the leases. should I be concerned?

There are plenty of short leases in Stamford Hill. The lease is a right to use the property for a prescribed time frame. As a lease shortens the value of the lease decreases and results in it becoming more costly to extend the lease. For this reason it is often a good idea to increase the term of the lease. Sometimes it is difficulties arise selling premises with a short lease because mortgage lenders may be unwilling to lend money on such properties. Lease extension can be a difficult process. We recommend you get professional help from a solicitor and surveyor with experience in this field

I've recently bought a leasehold flat in Stamford Hill. Am I liable to pay service charges for periods before completion of my purchase?

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. 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 be sure 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 employed by a busy estate agent office in Stamford Hill where we have witnessed a number of leasehold sales put at risk as a result of short leases. I have been given inconsistent advice from local Stamford Hill conveyancing firms. Please can you confirm whether the seller of a flat can commence the lease extension formalities 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 for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed prior to, or at the same time as completion of the disposal of the property.

An alternative approach is 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 choosing a Stamford Hill conveyancing practice to deal with our lease extension?

When appointing a solicitor for your lease extension (regardless if they are a Stamford Hill conveyancing practice) it is most important that they be familiar with the legislation and specialises in this area of conveyancing. We suggested that you talk with two or three firms including non Stamford Hill conveyancing practices before you instructing a firm. If the firm is ALEP accredited then that’s a bonus. Some following of questions might be of use:

• What volume of lease extensions has the firm conducted in Stamford Hill in the last twenty four months?
• What are the legal fees for lease extension conveyancing?

Can you provide any top tips for leasehold conveyancing in Stamford Hill from the point of view of speeding up the sale process?

• Much of the delay in leasehold conveyancing in Stamford Hill can be avoided if you appoint lawyers as soon as you market your property and ask them to put together the leasehold information needed by the buyers lawyers.
• If you have carried out any alterations to the premises would they have required Landlord’s permission? Have you, for example laid down wooden flooring? Most leases in Stamford Hill state that internal structural alterations or addition of wooden flooring necessitate a licence issued by the Landlord acquiescing to such works. Should you fail to have the paperwork to hand you should not communicate with the landlord without contacting your lawyer in advance.
• A minority of Stamford Hill 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 obtain bank and professional references. Any bank reference will need to confirm that the buyers are 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 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 freeholder or managing agents it is essential that these are settled before the property is marketed. The buyers and their solicitors will be nervous about purchasing a property where there is a current dispute. You may need to swallow your pride and discharge 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 ahead of the contract papers being issued to the buyers’ solicitors. You will still have to reveal details of the dispute to the purchasers, but it is better to reveal the dispute as historic as opposed to unresolved.
• If you have the benefit of shareholding in the Management Company, you should ensure that you hold the original share document. Organising a replacement share certificate can be a time consuming process and frustrates many a Stamford Hill conveyancing deal. Where a new share certificate is necessary, do contact the company director and secretary or managing agents (where relevant) for this as soon as possible.

I have attempted and failed to negotiate with my landlord to extend my lease without getting anywhere. Can a leaseholder apply to the Leasehold Valuation Tribunal? Can you recommend a Stamford Hill conveyancing firm to represent me?

You certainly can. We are happy to put you in touch with a Stamford Hill conveyancing firm who can help.

An example of a Lease Extension decision for a Stamford Hill property is Flat 25, Stamford Hill Mansions Stamford Hill in April 2010. The Tribunal therefore determined that the premium to be paid by the lessee to the freeholder for the extension of the lease should be £28,984.00 This case was in relation to 1 flat. The the unexpired term as at the valuation date was 59 years.

I invested in buying a 2 bed flat in Stamford Hill, conveyancing formalities finalised in 2010. Can you let me have an estimate of the premium that my landlord can legally expect in return for granting a renewal of my lease? Comparable flats in Stamford Hill with over 90 years remaining are worth £185,000. The ground rent is £45 per annum. The lease expires on 21st October 2095

With only 69 years remaining on your lease we estimate the premium for your lease extension to span between £12,400 and £14,200 as well as legals.

The figure above a general guide to costs for renewing a lease, but we cannot give you the actual costs without more comprehensive due diligence. You should not use the figures in a Notice of Claim or as an informal offer. There may be other concerns that need to be considered and you obviously should be as accurate as possible in your negotiations. Neither should you move forward placing reliance on this information without first seeking the advice of a professional.