Fixed-fee leasehold conveyancing in Melbourne:

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

Melbourne leasehold conveyancing: Q and A’s

I would like to let out my leasehold apartment in Melbourne. Conveyancing solicitor who did the purchase is retired - so can't ask her. Do I need to ask my freeholder for permission?

Notwithstanding that your last Melbourne conveyancing lawyer is not available you can review your lease to see if it allows you to sublet the property. The rule is that if the lease is non-specific, subletting is allowed. Quite often there is a prerequisite that you are obliged to seek consent from your landlord or other appropriate person prior to subletting. The net result is that you cannot sublet without prior permission. Such consent should not be unreasonably turned down. If the lease does not allow you to sublet you will need to ask your landlord for their consent.

Due to sign contracts shortly on a ground floor flat in Melbourne. Conveyancing solicitors inform me that they are sending me a report on Monday. What should I be looking out for?

The report on title for your leasehold conveyancing in Melbourne should include some of the following:

  • Details of the parties to the lease, for example these could be the leaseholder (you), head lessor, landlord
  • The physical extent of the premises. This will be the apartment itself but may incorporate a loft or cellar if appropriate.
  • Setting out your legal entitlements in relation to common areas in the block.By way of example, does the lease include a right of way over an accessway or hallways?
  • Does the lease prohibit wood flooring?
  • Whether the lease restricts you from renting out the property, or having a home office for business
  • Repair and maintenance of the flat
  • Whether the landlord has obligations to ensure rights of quiet enjoyment over your premises and do you know what it means in practice? For details of the information to be contained in your report on your leasehold property in Melbourne please ask your solicitor in ahead of your conveyancing in Melbourne

    • I today plan to offer on a house that seems to tick a lot of boxes, at a great figure which is making it all the more appealing. I have subsequently found out that the title is leasehold rather than freehold. I am assuming that there are issues purchasing a house with a leasehold title in Melbourne. Conveyancing lawyers have are soon to be appointed. Will they explain the issues?

    The majority of houses in Melbourne are freehold rather than leasehold. In this scenario it’s worth having a local conveyancer who is familiar with the area can assist with the conveyancing process. We note that you are buying in Melbourne so you should seriously consider looking for a Melbourne conveyancing practitioner and be sure that they are used to transacting on leasehold houses. First you will need to check the unexpired lease term. Being a lessee you will not be entirely free to do whatever you want to the property. The lease comes with conditions for example obtaining the landlord’spermission to conduct changes to the property. It may be necessary to pay a contribution towards the upkeep of the communal areas where the property is located on an estate. Your lawyer will appraise you on the various issues.

    I am employed by a reputable estate agent office in Melbourne where we see a number of flat sales derailed as a result of leases having less than 80 years remaining. I have received conflicting advice from local Melbourne conveyancing firms. Please can you clarify whether the seller of a flat can commence 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 kick-start the lease extension process and assign the benefit of the notice to the purchaser. This means that the proposed purchaser 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 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 purchaser.

    What are your top tips when it comes to choosing a Melbourne conveyancing practice to deal with our lease extension?

    If you are instructing a conveyancer for lease extension works (regardless if they are a Melbourne conveyancing practice) it is essential that they be familiar with the legislation and specialises in this area of work. We advise that you speak with several firms including non Melbourne conveyancing practices prior to instructing a firm. Where the conveyancing practice is ALEP accredited then that’s a bonus. Some following of questions could be useful:

    • If the firm is not ALEP accredited then why not?
  • What are the costs for lease extension work?

    • Melbourne Conveyancing for Leasehold Flats - A selection of Queries Prior to Purchasing

      The best form of lease structure is where the freehold interest is in the ownership of the leaseholders. In this situation the tenants enjoy being in charge if their destiny and notwithstanding that a managing agent is frequently employed where the building is bigger than a house conversion, the managing agent is directed by the tenants. Who are the managing agents? Is anyone aware of any major works on the horizon that could increase the maintenance charges?

    Other Topics

    Lease Extensions in Melbourne