I have just appointed agents to market my basement flat in Totteridge.Conveyancing has not commenced but I have just received a half-yearly maintenance charge invoice – Do I pay up?

Your conveyancing lawyer is likely to suggest that you should pay the invoice 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 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. This will smooth the conveyancing process.

Last month I purchased a leasehold property in Totteridge. Do I have any liability for service charges for periods before my ownership?

In a situation where the service charge has already been demanded from the previous owner 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. A critical element of leasehold conveyancing for your conveyancer to ensure 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 a negotiator for a busy estate agent office in Totteridge where we see a few flat sales jeopardised due to leases having less than 80 years remaining. I have been given contradictory information from local Totteridge conveyancing solicitors. Can you shed some light as to whether the vendor of a flat can instigate 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 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 needs to be completed prior to, or simultaneously with completion of the sale.

An alternative approach is 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 offer any advice when it comes to appointing a Totteridge conveyancing practice to carry out our lease extension conveyancing?

When appointing a solicitor for your lease extension (regardless if they are a Totteridge conveyancing firm) it is most important that he or she should be familiar with the legislation and specialises in this area of work. We suggested that you speak with several firms including non Totteridge conveyancing practices before you instructing a firm. If the firm is ALEP accredited then so much the better. Some following of questions could be of use:

• How familiar is the firm with lease extension legislation?
• What volume of lease extensions have they carried out in Totteridge in the last 12 months?

Do you have any advice for leasehold conveyancing in Totteridge from the perspective of expediting the sale process?

• A significant proportion of the frustration in leasehold conveyancing in Totteridge can be avoided if you get in touch lawyers the minute your agents start advertising the property and ask them to put together the leasehold information which will be required by the buyers solicitors.
• Some Totteridge 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. The bank reference will need to confirm that the buyers are able to meet the yearly 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 conflict with your freeholder or managing agents it is very important that these are settled prior to the flat being marketed. The buyers and their solicitors will be reluctant to purchase a flat where a dispute is ongoing. You may need to swallow your pride and discharge 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 are still duty bound to disclose particulars of the dispute to the buyers, but it is better to present the dispute as over rather than ongoing.
• If you are supposed to have a share in the Management Company, you should ensure that you are holding the original share certificate. Arranging a re-issued share certificate is often a lengthy process and delays many a Totteridge home move. If a reissued share is necessary, you should approach the company officers or managing agents (where relevant) for this sooner rather than later.
• You believe that you know the number of years left on your lease but you should verify this via your conveyancers. A buyer’s conveyancer will not be happy to advise their client to proceed with the purchase of a leasehold property the lease term is below 75 years. In the circumstances it is important 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 home on the market for sale.

I am the proprietor of a basement flat in Totteridge. In the absence of agreement between myself and the landlord, can the Leasehold valuation Tribunal determine the amount due for a lease extension?

Most certainly. We can put you in touch with a Totteridge conveyancing firm who can help.

An example of a Lease Extension case for a Totteridge premises is Flat 2 2 Netherfield Road in April 2010. The Tribunale held that premium payable for a 90 year extension to the existing Lease should be £7,705. This case affected 1 flat. The remaining number of years on the lease was 76 years.

Totteridge Conveyancing for Leasehold Flats - Examples of Queries before Purchasing

Its a good idea to discover as much as possible regarding the managing agents as they will either make your life much simpler or uncomfortable. As the owner of a leasehold property you are often in the clutches of the managing agents both financially and when it comes to day to day matters such as the cleanliness of the common parts. Ask prospective neighbours what they think of them. On a final note, find out the dates that the service charges are due to the relevant party and specifically what it includes. The answer will be helpful as a) areas may result in problems for the building as the communal areas may begin to deteriorate where services are not paid for b) if the leaseholders have an issue with the running of the building you will want to know about it