Having checked my lease I have discovered that there are only 72 years unexpired on my lease in Melbourne. I am keen to get lease extension but my landlord is absent. What are my options?

If you qualify, under the Leasehold Reform, Housing and Urban Development Act 1993 you can submit an application to the County Court for an order to dispense with the service of the initial notice. This will mean that your lease can be lengthened by the magistrate. However, you will be required to demonstrate that you have done all that could be expected to find the lessor. In some cases an enquiry agent would be helpful to try and locate and prepare a report to be used as evidence that the freeholder is indeed missing. It is advisable to get professional help from a property lawyer in relation to investigating the landlord’s disappearance and the vesting order request to the County Court overseeing Melbourne.

I've found a house that appears to meet my requirements, at a great price which is making it more attractive. I have since found out that the title is leasehold as opposed to freehold. I am assuming that there are issues purchasing a house with a leasehold title in Melbourne. Conveyancing lawyers have are soon to be instructed. Will my lawyers set out the risks of buying a leasehold house in Melbourne ?

The majority of houses in Melbourne are freehold and not leasehold. In this scenario it’s worth having a local solicitor who is familiar with the area can assist with the conveyancing process. We note that you are purchasing in Melbourne so you should seriously consider shopping around for a Melbourne conveyancing solicitor and check that they are used to dealing with leasehold houses. First you will need to check the unexpired lease term. Being a lessee you will not be at liberty to do whatever you want to the property. The lease comes with conditions such as obtaining the freeholder’sconsent to carry out changes to the property. It may be necessary to pay a service charge towards the maintenance of the communal areas where the house is located on an estate. Your solicitor should appraise you on the various issues.

I am looking at a couple of apartments in Melbourne both have approximately forty five years left on the lease term. Should I regard a short lease as a deal breaker?

There are plenty of short leases in Melbourne. The lease is a right to use the premises for a period of time. As the lease shortens the value of the lease reduces and it becomes more costly to extend the lease. For this reason it is generally wise to extend the lease term. Sometimes it is difficulties arise selling premises with a short lease as mortgage companies less inclined to grant a loan on properties of this type. Lease extension can be a difficult process. We advise that you get professional help from a solicitor and surveyor with experience in this field

I am a negotiator for a busy estate agency in Melbourne where we have experienced a number of leasehold sales derailed as a result of short leases. I have been given contradictory information from local Melbourne conveyancing solicitors. Please can you shed some light as to whether the seller of a flat can instigate the lease extension formalities for the purchaser on completion of the sale?

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 need not have to wait 2 years for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment has to be done before, or simultaneously with completion of the sale.

Alternatively, it may be possible 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 purchaser.

We expect to complete the disposal of our £200000 garden flat in Melbourne next week. The landlords agents has quoted £396 for Certificate of Compliance, insurance certificate and previous years service charge statements. Is it legal for a freeholder to charge exorbitant fees for a leasehold conveyance in Melbourne?

Melbourne conveyancing on leasehold apartments more often than not necessitates the buyer’s conveyancer submitting enquiries for the landlord to answer. Although the landlord is not legally bound to answer such questions the majority will be content to do so. They are at liberty levy a reasonable charge for answering enquiries or supplying documentation. There is no upper cap for such fees. The average costs for the information that you are referring to is £350, in some situations it is in excess of £800. The management information fee demanded by the landlord must be accompanied by a synopsis of entitlements and obligations in relation to administration fees, without which the invoice is technically not due. In reality one has little choice but to pay whatever is demanded should you wish to exchange contracts with the buyer.

Melbourne Leasehold Conveyancing - Sample of Queries Prior to buying

The best form of lease arrangement is where the freehold reversion is owned by the leaseholders. In this arrangement the lessees enjoy control and although a managing agent is usually retained if the building is larger than a house conversion, the managing agent acts for the leaseholders themselves. On the whole the cost for major works are not included within maintenance charges, although a few managing agents in Melbourne obliged leasehold owners to contribute towards a reserve fund created for the specific purpose of establishing a fund for major works. Make sure you find out if there are any onerous restrictions in the lease. For example some leases prohibit pets being permitted in in a block in Melbourne. If you love the propertyin Melbourne but your dog is not allowed to make the move with you then you have a very hard compromise.

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Lease Extensions in Melbourne