I have just started marketing my 2 bed flat in Stockwell.Conveyancing has not commenced but I have just received a yearly maintenance charge invoice – should I leave it to the buyer to sort out?

The sensible thing to do is 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 management companies will not acknowledge the buyer unless 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. Having a clear account will assist your cause and will leave you no worse off financially.

I've found a house that appears to meet my requirements, at a reasonable price which is making it all the more appealing. I have subsequently been informed that it's a leasehold rather than freehold. I would have thought that there are particular concerns purchasing a leasehold house in Stockwell. Conveyancing advisers have not yet been instructed. Will they explain the issues?

Most houses in Stockwell are freehold rather than leasehold. In this scenario it’s worth having a local solicitor used to dealing with such properties who can assist with the conveyancing process. It is clear that you are buying in Stockwell so you should seriously consider looking for a Stockwell conveyancing practitioner and be sure that they have experience in advising on leasehold houses. As a matter of priority you will need to check the number of years remaining. As a lessee you will not be entirely free to do whatever you want with the house. The lease will likely included provisions for example requiring the freeholder’spermission to carry out changes to the property. It may be necessary to pay a maintenance charge towards the upkeep of the communal areas where the property is located on an estate. Your conveyancer will appraise you on the various issues.

I am looking at a couple of apartments in Stockwell which have approximately 50 years left on the leases. should I be concerned?

There are no two ways about it. A leasehold flat in Stockwell is a deteriorating asset as a result of the reducing lease term. The nearer the lease gets to its expiry date, the more it reduces the value of the premises. The majority of purchasers and banks, leases with less than eighty years become less and less attractive. On a more upbeat 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 a residence 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 Stockwell conveyancing experts who will explain the options available to you during an initial telephone conversation free of charge. A more straightforward and quicker method of extending would be to contact your landlord directly and sound him out on the prospect of extending 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 the agreed 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.

I am a negotiator for a reputable estate agent office in Stockwell where we have witnessed a few flat sales put at risk due to leases having less than 80 years remaining. I have received conflicting advice from local Stockwell conveyancing solicitors. Please can you shed some light as to whether the owner of a flat can commence the lease extension formalities 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. This means that the buyer 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 prior to, 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 purchaser.

Can you provide any top tips for leasehold conveyancing in Stockwell with the purpose of expediting the sale process?

• Much of the frustration in leasehold conveyancing in Stockwell can be bypassed if you instruct lawyers as soon as your agents start advertising the property and ask them to put together the leasehold documentation needed by the buyers solicitors.
• The majority landlords or managing agents in Stockwell levy fees for providing management packs for a leasehold homes. You or your lawyers should discover the fee that they propose to charge. The management information can be applied for 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 frequent reason for frustration in leasehold conveyancing in Stockwell.
• In the event that you altered the property did you need the Landlord’s consent? In particular have you laid down wooden flooring? Most leases in Stockwell state that internal structural changes or installing wooden flooring require a licence issued by the Landlord approving such changes. Should you dont have the paperwork to hand do not communicate with the landlord without checking with your lawyer first.
• If you have the benefit of shareholding in the Management Company, you should ensure that you have the original share certificate. Organising a duplicate share certificate is often a time consuming formality and slows down many a Stockwell home move. Where a duplicate share certificate is needed, you should approach the company director and secretary or managing agents (if relevant) for this as soon as possible.
• You may think that you are aware of the number of years left on your lease but it would be wise to verify this via your lawyers. A buyer’s lawyer will be unlikely to recommend their client to proceed with the purchase of a leasehold property the remaining number of years is below 80 years. In the circumstances it is essential at an as soon as possible that you consider whether the lease term requires a lease extension. If it does, contact your solicitors before you put your premises on the market for sale.

After months of dialogue we simply can't agree with our landlord on how much the lease extension should cost for our flat in Stockwell. Can we issue an application to the Residential Property Tribunal Service?

if there is a missing freeholder or if there is disagreement about what the lease extension should cost, under the relevant statutes you can apply to the Leasehold Valuation Tribunal to assess the amount due.

An example of a Freehold Enfranchisement decision for a Stockwell property is 3 Tintern Street in February 2010. The tribunal had jurisdiction to make a decision on the price of the freehold of the subject premises and concluded that the premium should be £24,630.00 This case was in relation to 2 flats. The unexpired lease term was 73.69 years.

Stockwell Conveyancing for Leasehold Flats - Sample of Questions you should ask Prior to Purchasing

It is important to be aware if a new roof is being installed or some other major work is due shortly that will be shared between the tenants and may well dramatically impact the level of the maintenance fees or necessitate a specific invoice. The answer will be important as a) areas may cause problems for the block as the common areas may begin to deteriorate if maintenance remain unpaid b) if the tenants have an issue with the managing agents you will wish to know about it Where a Stockwell lease has no more than 80 years it will impact the value of the apartment. It is worth checking with your mortgage company that they are happy with remaining years on the lease. A short lease means that you will probably have to extend the lease sooner rather than later and it is worth finding out how much this will be. For most Stockwelllease extensions you would be required to have owned the property for two years before you are eligible to carry out a lease extension.