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Any conveyancing solicitor can theoretically deal with your leasehold conveyancing in Ludlow, your mortgage provider may unwilling to work with them if the firm are not on their list of approved solicitors for conveyancing

Common questions relating to Ludlow leasehold conveyancing

Jane (my partner) and I may need to sub-let our Ludlow ground floor flat for a while due to a new job. We used a Ludlow conveyancing practice in 2002 but they have closed and we did not have the foresight to seek any advice as to whether the lease prohibits the subletting of the flat. How do we find out?

Some leases for properties in Ludlow do contain a provision to say that subletting is only allowed with permission. The landlord is not entitled to unreasonably refuse but, in such cases, they would need to review references. Experience suggests that problems are usually caused by unsatisfactory tenants rather than owner-occupiers and for that reason you can expect the freeholder to take up the references and consider them carefully before granting consent.

I am a negotiator for a reputable estate agency in Ludlow where we have witnessed a number of leasehold sales jeopardised as a result of leases having less than 80 years remaining. I have received inconsistent advice from local Ludlow conveyancing firms. Can you clarify whether the vendor of a flat can initiate the lease extension formalities for the buyer?

Provided that the seller has been the owner for at least 2 years it is possible, to serve a Section 42 notice to commence 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 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 before, or at the same time as completion of the disposal of the property.

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.

What are your top tips when it comes to appointing a Ludlow conveyancing firm to deal with our lease extension?

If you are instructing a solicitor for lease extension works (regardless if they are a Ludlow conveyancing firm) it is essential that they be familiar with the legislation and specialises in this area of conveyancing. We recommend that you make enquires with two or three firms including non Ludlow conveyancing practices prior to instructing a firm. If the firm is ALEP accredited then that’s a bonus. Some following of questions could be useful:

  • If they are not ALEP accredited then why not?
  • Can they put you in touch with client in Ludlow who can give a testimonial?

    • Can you provide any advice for leasehold conveyancing in Ludlow with the aim of expediting the sale process?

    • Much of the frustration in leasehold conveyancing in Ludlow can be reduced if you instruct lawyers as soon as your agents start marketing the property and request that they start to put together the leasehold information needed by the purchasers’ lawyers.
    • Many freeholders or managing agents in Ludlow charge for supplying management packs for a leasehold homes. You or your lawyers should enquire as to the actual amount of the charges. The management pack can be applied for as soon as you have a buyer, thus reducing delays. The typical amount of time it takes to receive management information is three weeks. It is the most usual cause of frustration in leasehold conveyancing in Ludlow.
  • A minority of Ludlow 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 purchasers or their solicitors.
  • If you have had conflict with your landlord or managing agents it is very important that these are settled 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 need to swallow your pride and discharge any arrears of service charge or settle the dispute prior to completion of the sale. It is therefore preferable to have any dispute settled prior to 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 have the benefit of shareholding in the freehold, you should ensure that you have the original share certificate. Organising a re-issued share certificate is often a lengthy formality and delays many a Ludlow home move. Where a duplicate share is needed, do contact the company officers or managing agents (where relevant) for this at the earliest opportunity.

    • When it comes to leasehold conveyancing in Ludlow what are the most frequent lease defects?

    There is nothing unique about leasehold conveyancing in Ludlow. All leases are unique and legal mistakes in the legal wording can result in certain clauses are not included. For example, if your lease is missing any of the following, it could be defective:

    • Repairing obligations to or maintain parts of the premises
    • A duty to insure the building
    • Clauses dealing with recovering service charges for expenditure on the building or common parts.
    • Service charge per centages that don't add up correctly leaving a shortfall

    You could have difficulties when selling your property if you have a defective lease primarily because it impacts on the ability to obtain a mortgage on the property. Accord Mortgages Ltd, The Mortgage Works, and TSB all have very detailed conveyancing instructions when it comes to what is expected in a lease. Where a lender has been advised by their lawyers that the lease is problematic they may refuse to provide security, forcing the purchaser to withdraw.

    Leasehold Conveyancing in Ludlow - A selection of Queries Prior to Purchasing

      The prefered form of lease structure is where the freehold reversion is in the ownership of the leaseholders. In this arrangement the leaseholders benefit from control and notwithstanding that a managing agent is usually employed if it is larger than a house conversion, the managing agent acts for the leaseholders themselves. Plenty Ludlow leasehold flats will have a service bill for the upkeep of the block invoiced on behalf of the landlord. If you buy the property you will have to meet this contribution, usually in instalments accross the year. This may be anything from a couple of hundred pounds to thousands of pounds for buildings with lifts and large common areas. There will also be a rentcharge to be met yearly, ordinarily this is not a large sum, say approximately £25-£75 but you need to check as on occasion it can be surprisingly expensive. Is there a share of the freehold?

    Other Topics

    Lease Extensions in Ludlow