Helen (my wife) and I may need to rent out our Stepney garden flat for a while due to a career opportunity. We instructed a Stepney conveyancing practice in 2003 but they have closed and we did not think at the time seek any advice as to whether the lease permits subletting. How do we find out?

Notwithstanding that your previous Stepney conveyancing solicitor is no longer around you can review your lease to see if it allows you to sublet the apartment. The accepted inference is that if the deeds are silent, subletting is allowed. There may be a precondition that you are obliged to obtain permission from your landlord or other appropriate person before subletting. This means that you cannot sublet in the absence of prior consent. The consent must not not be unreasonably withheld. If your lease does not allow you to sublet you should ask your landlord for their consent.

There are only 62 years unexpired on my flat in Stepney. I am keen to extend my lease but my freeholder is can not be found. What are my options?

If you meet the appropriate requirements, under the Leasehold Reform, Housing and Urban Development Act 1993 you can submit an application to the County Court for an order to dispense with the service of the initial notice. This will enable the lease to be lengthened by the Court. You will be obliged to prove that you or your lawyers have used your best endeavours to locate the freeholder. In some cases an enquiry agent may be useful to conduct investigations and prepare an expert document to be used as proof that the freeholder is indeed missing. It is advisable to get professional help from a property lawyer in relation to proving the landlord’s absence and the application to the County Court overseeing Stepney.

I am looking at a two apartments in Stepney which have approximately forty five years unexpired on the leases. should I be concerned?

There is no doubt about it. A leasehold flat in Stepney 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 value of the property. The majority of purchasers and lenders, 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 property 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 premises 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 Stepney conveyancing experts who will explain the options available to you during an initial telephone conversation free of charge. More often than not it is possible to negotiate informally with the freeholder to extend 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.

What are your top tips when it comes to choosing a Stepney conveyancing practice to deal with our lease extension?

If you are instructing a conveyancer for lease extension works (regardless if they are a Stepney conveyancing firm) it is essential that they be familiar with the legislation and specialises in this area of conveyancing. We advise that you make enquires with several firms including non Stepney conveyancing practices prior to instructing a firm. Where the conveyancing practice is ALEP accredited then that’s a bonus. Some following of questions could be helpful:

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

Our conveyancer has advised that he intends to complete and exchange simultaneously on the disposal of our £ 250000 garden flat in Stepney on Thursday in a week. The management company has quoted £<Macro 'feeRangeWithVAT'> for Certificate of Compliance, insurance certificate and previous years service charge statements. Is the landlord entitled to charge an administration fee for a leasehold conveyance in Stepney?

Stepney conveyancing on leasehold flats normally requires the purchaser’s lawyer sending enquiries for the landlord to answer. Although the landlord is not legally bound to address these enquiries most will be willing to assist. They may invoice a reasonable charge for responding to questions or supplying documentation. There is no set fee. The average costs for the paperwork that you are referring to is over three hundred pounds, in some cases it is in excess of £800. The management information fee invoiced by the landlord must be sent together with a synopsis of rights and obligations in respect of administration fees, without which the charge is technically not due. Reality however dictates that one has little option but to pay whatever is demanded should you wish to exchange contracts with the buyer.

Having spent years of dialogue we are unable to agree with our landlord on how much the lease extension should cost for our flat in Stepney. Does the Leasehold Valuation Tribunal have jurisdiction to calculate the appropriate figures?

in cases where there is a absentee landlord or where there is dispute about the premium for a lease extension, under the relevant statutes you can apply to the LVT to judgment on the sum to be paid.

An example of a Freehold Enfranchisement decision for a Stepney property is 12, 14 & 16 Hull Close in May 2010. the Tribunal determined that the premium payable for the acquisition of the freehold to the subject premises was the sum of £18,300 This case related to 3 flats. The unexpired lease term was 101.61 years.

Stepney Conveyancing for Leasehold Flats - Examples of Questions you should ask Prior to Purchasing

Does the lease have onerous restrictions? Does the lease have more than 85 years remaining?