Common questions relating to Melbourne leasehold conveyancing
I only have 62 years left on my flat in Melbourne. I now want to extend my lease but my freeholder is absent. What should I do?
On the basis that you meet the appropriate requirements, under the Leasehold Reform, Housing and Urban Development Act 1993 you can submit an application to the County Court for for permission to dispense with the service of the initial notice. This will mean that your lease can be granted an extra 90 years by the Court. You will be obliged to prove that you or your lawyers have used your best endeavours to locate the landlord. On the whole a specialist should be helpful to conduct investigations and prepare a report which can be used as proof that the landlord is indeed missing. It is advisable to get professional help from a solicitor in relation to investigating the landlord’s disappearance and the application to the County Court overseeing Melbourne.
I today plan to offer on a house that seems to meet my requirements, at a reasonable price which is making it all the more appealing. I have subsequently found out that it's a leasehold rather than freehold. I would have thought that there are particular concerns buying a house with a leasehold title in Melbourne. Conveyancing lawyers have are soon to be appointed. Will they explain the issues?
Most houses in Melbourne are freehold rather than leasehold. In this scenario it’s worth having a local conveyancer used to dealing with such properties who can assist with the conveyancing process. It is clear that you are buying in Melbourne in which case you should be shopping around for a Melbourne conveyancing solicitor and check that they have experience in transacting on leasehold houses. First you will need to check the unexpired lease term. As a tenant you will not be entirely free to do whatever you want with the house. The lease comes with conditions for example obtaining the landlord’sconsent to carry out alterations. You may also be required to pay a maintenance charge towards the upkeep of the estate where the house is located on an estate. Your conveyancer will appraise you on the various issues.
My wife and I purchased a leasehold house in Melbourne. Conveyancing and Clydesdale mortgage are in place. I have received a letter from someone saying they have taken over the reversionary interest in the property. It included a ground rent demand for rent dating back to 1995. The conveyancing solicitor in Melbourne who acted for me is not around.Do I pay?
First contact the Land Registry to make sure that this person is in fact the new freeholder. You do not need to incur the fees of a Melbourne conveyancing practitioner to do this as you can do this on the Land Registry website for less than a fiver. You should note that in any event, even if this is the rightful landlord, under the Limitation Act 1980 no more than 6 years of rent can be collected.
I've recently bought a leasehold house in Melbourne. Do I have any liability for service charges for periods before completion of my purchase?
Where the service charge has already been demanded from the previous owner and they have not paid you would not usually be personally liable for the arrears. However, your landlord may still be able to take action to forfeit the lease. It is an essential part of leasehold conveyancing for your conveyancer to be sure to have an up to date clear service charge receipt before completion of your purchase. If you have a mortgage this is likely to be a requirement of your lender.
If you purchase part way through an accounting year you may be liable for charges not yet demanded even if they relate to a period prior to your purchase. In such circumstances your conveyancer would normally arrange for the seller to set aside some money to cover their part of the period (usually called a service charge retention).
We expect to complete our sale of a £200000 garden flat in Melbourne in seven days. The freeholder has quoted £336 for Certificate of Compliance, building insurance schedule and 3 years service charge statements. Is it legal for a freeholder to charge exorbitant fees for a leasehold conveyance in Melbourne?
Melbourne conveyancing on leasehold maisonettes nine out of ten times involves administration charges raised by management companies :
- Completing conveyancing due diligence questions
- Where consent is required before sale in Melbourne
- Supplying insurance information
- Deeds of covenant upon sale
- Registering of the assignment of the change of lessee after a sale
Leasehold Conveyancing in Melbourne - Examples of Queries before buying
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Are there any major works in the near future that could increase the maintenance fees?
This information is helpful as a) areas may result in problems in the building as the communal areas may begin to deteriorate where repairs remain unpaid b) if the tenants have an issue with the running of the building you will need to have complete disclosure
What prohibitions exist in the Melbourne Lease?
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