Examples of recent questions relating to leasehold conveyancing in Luton
Looking forward to exchange soon on a ground floor flat in Luton. Conveyancing solicitors have said that they report fully on Monday. What should I be looking out for?
Your report on title for your leasehold conveyancing in Luton should include some of the following:
- Defining your rights in respect of the communal areas in the block.E.G., does the lease grant a right of way over an accessway or staircase?
My wife and I purchased a leasehold house in Luton. Conveyancing and Santander mortgage organised. A letter has just been received from someone saying they have taken over the reversionary interest in the property. It included a demand for arrears of ground rent dating back to 1996. The conveyancing practitioner in Luton who acted for me is not around.Do I pay?
First make enquiries of HMLR to make sure that this person is in fact the new freeholder. You do not need to instruct a Luton conveyancing lawyer to do this as it can be done on-line for less than a fiver. You should note that regardless, even if this is the rightful freeholder, under the Limitation Act 1980 the limitation period for recovery of ground rent is six years.
I am employed by a busy estate agent office in Luton where we have experienced a number of leasehold sales derailed due to leases having less than 80 years remaining. I have been given conflicting advice from local Luton conveyancing solicitors. Could you clarify whether the vendor of a flat can instigate the lease extension formalities for the purchaser on completion of the sale?
Provided that 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 can avoid having to wait 2 years to extend their lease. Both sets of lawyers will agree to form of assignment. The assignment has to be done before, or simultaneously with completion of the sale.
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.
Can you provide any top tips for leasehold conveyancing in Luton from the point of view of speeding up the sale process?
- A significant proportion of the frustration in leasehold conveyancing in Luton can be avoided where you instruct lawyers the minute your agents start marketing the property and ask them to put together the leasehold information which will be required by the purchasers’ conveyancers.
- Many landlords or Management Companies in Luton levy fees for providing management packs for a leasehold premises. You or your lawyers should find out the actual amount of the charges. The management information can be applied for as soon as you have a buyer, thus reducing delays. The average time it takes to receive management information is three weeks. It is the most common reason for delay in leasehold conveyancing in Luton.
What makes a Luton lease unmortgageable?
Leasehold conveyancing in Luton is not unique. All leases are individual and legal mistakes in the legal wording can sometimes mean that certain clauses are not included. The following missing provisions could result in a defective lease:
- Repairing obligations to or maintain parts of the property
- Insurance obligations
- A provision for the recovery of money spent for the benefit of another party.
- Maintenance charge proportions which don’t add up to the correct percentage
A defective lease will likely cause problems when trying to sell a property as they can affect a potential buyer’s ability to obtain a mortgage. Nationwide Building Society, The Mortgage Works, and Nottingham Building Society all have express requirements when it comes to what is expected in a lease. Where a lender has been advised by their lawyers that the lease does not cover certain provisions they may refuse to provide security, obliging the purchaser to pull out.
Leasehold Conveyancing in Luton - Examples of Questions you should ask before buying
Please note that where the lease has fewer than 80 years it will have adverse implications on the value of the flat. Check with your mortgage company that they are happy with the length of the lease. A short lease means that you will probably need a lease extension sooner rather than later and you need to have some idea of how much this will be. Remember, in most cases you would be be obliged to have been the owner of the residence for a couple of years in order to be entitled to exercise a lease extension.
Is the freehold owned jointly by the tenants?
How much is the maintenance charge and ground rent on the property?