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

Melbourne leasehold conveyancing Example Support Desk Enquiries

My wife and I purchased a leasehold flat in Melbourne. Conveyancing and Lloyds TSB Bank mortgage organised. I have received a letter from someone saying they have taken over the freehold. It included a ground rent demand for rent dating back to 1993. The conveyancing practitioner in Melbourne who previously acted has long since retired.What should I do?

The first thing you should do is contact HMLR to be sure that this person is in fact the registered owner of the freehold reversion. There is no need to instruct a Melbourne conveyancing solicitor to do this as it can be done on-line for a few pound. Rest assured that in any event, even if this is the legitimate landlord, under the Limitation Act 1980 the limitation period for recovery of ground rent is six years.

I am looking at a two maisonettes in Melbourne which have approximately forty five years remaining on the leases. Will this present a problem?

A lease is a right to use the property for a prescribed time frame. As a lease shortens the value of the lease deteriorate and results in it becoming more costly to extend the lease. For this reason it is often a good idea to increase the term of the lease. It is often difficult to sell a property with a short lease because mortgage lenders less inclined to grant a loan on such properties. Lease enfranchisement can be a protracted process. We advise that you seek professional help from a solicitor and surveyor with experience in this field

I am employed by a reputable estate agent office in Melbourne where we see a number of leasehold sales derailed as a result of short leases. I have been given contradictory information from local Melbourne conveyancing solicitors. Can you confirm whether the owner of a flat can instigate the lease extension process 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 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 to extend their lease. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed prior to, or at the same time as completion of the disposal of the property.

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 buyer.

Can you provide any top tips for leasehold conveyancing in Melbourne with the purpose of saving time on the sale process?

  • A significant proportion of the frustration in leasehold conveyancing in Melbourne can be reduced where you instruct lawyers the minute your agents start advertising the property and ask them to put together the leasehold documentation which will be required by the purchasers’ lawyers.
  • The majority freeholders or managing agents in Melbourne charge for providing management packs for a leasehold premises. You or your lawyers should enquire as to the fee that they propose to charge. The management pack sought on or before finding a buyer, thus reducing delays. The typical amount of time it takes to obtain the necessary information is three weeks. It is the most frequent cause of delay in leasehold conveyancing in Melbourne.
  • In the event that you altered the property did you need the Landlord’s approval? Have you, for example laid down wooden flooring? Most leases in Melbourne state that internal structural changes or laying down wooden flooring require a licence issued by the Landlord approving such works. Where you dont have the paperwork in place you should not communicate with the landlord without contacting your conveyancer in advance.
  • A minority of Melbourne leases require Landlord’s consent to the sale and approval of the buyers. 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 should make it clear that the buyer is financially capable of paying 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.
  • You may think that you are aware of the number of years left on your lease but you should double-check via your lawyers. A purchaser's conveyancer will not be happy to advise their client to where the remaining number of years is under 80 years. In the circumstances it is essential at an early stage that you identify whether the lease requires a lease extension. If it does, contact your solicitors before you put your home on the market for sale.

    • In relation to leasehold conveyancing in Melbourne what are the most frequent lease problems?

    There is nothing unique about leasehold conveyancing in Melbourne. Most leases is drafted differently and drafting errors can sometimes mean that certain clauses are erroneous. For example, if your lease is missing any of the following, it could be defective:

    • 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.
    • Service charge per centages that don't add up correctly leaving a shortfall

    You may have a problem when selling your property if you have a defective lease as they can affect a potential buyer’s ability to obtain a mortgage. Santander, Leeds Building Society, and Platform Home Loans Ltd all have express 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 defective they may refuse to grant the mortgage, forcing the buyer to pull out.

    Leasehold Conveyancing in Melbourne - Examples of Questions you should consider before buying

      Is there a share of the freehold? Many Melbourne leasehold flats will be liable to pay a service bill for maintenance of the building set by the management company. Where you buy the property you will have to pay this amount, usually in instalments throughout the year. This could differ from a couple of hundred pounds to thousands of pounds for bigger purpose-built blocks. In all probability there will be a rentcharge to be met annual, this is usually not a exorbitant figure, say about £25-£75 but you should to check as occasionally it can be prohibitively expensive. For many Melbourne leaseholds the cost for major works tend not to be included within maintenance charges, albeit that there some managing agents in Melbourne ask leasehold owners to contribute towards a sinking fund and this is used to offset against major repairs or maintenance.

    Other Topics

    Lease Extensions in Melbourne