I’m about to sell my ground floor flat in Millom.Conveyancing is yet to be initiated but I have just had a quarterly maintenance charge demand – what should I do?

Your conveyancing lawyer is likely to suggest that you should pay the service charge as normal because all ground rent and service charges will be apportioned on completion, so you will be reimbursed by the buyer for the period running from after the completion date to the next payment date. Most management companies will not acknowledge the buyer unless the service charges have been paid and are up to date so it is important for both buyer and seller for the seller to show that they are up to date. Having a clear account will assist your cause and will leave you no worse off financially.

I've found a house that seems to tick a lot of boxes, at a reasonable price which is making it all the more appealing. I have subsequently been informed that it's a leasehold as opposed to freehold. I am assuming that there are issues purchasing a house with a leasehold title in Millom. Conveyancing lawyers have not yet been appointed. Will my lawyers set out the risks of buying a leasehold house in Millom ?

Most houses in Millom are freehold rather than 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 Millom so you should seriously consider shopping around for a Millom conveyancing solicitor and check that they have experience in advising on leasehold houses. First you will need to check the number of years remaining. Being a lessee you will not be entirely free to do whatever you want with the house. The lease comes with conditions for example obtaining the freeholder’spermission to carry out changes to the property. It may be necessary to pay a service charge towards the upkeep of the communal areas where the house is part of an estate. Your lawyer will appraise you on the various issues.

I am looking at a two maisonettes in Millom which have about 50 years remaining on the leases. Will this present a problem?

There are plenty of short leases in Millom. The lease is a legal document that entitles you to use the property for a period of time. As a lease gets shorter the value of the lease deteriorate and it becomes more costly to acquire a lease extension. For this reason it is advisable to extend the lease term. It is often difficult to sell a property with a short lease as mortgage lenders less inclined to grant a loan on such properties. Lease enfranchisement can be a protracted process. We advise that you get professional help from a solicitor and surveyor with experience in this arena

I've recently bought a leasehold property in Millom. Do I have any liability for service charges relating to a period prior to my ownership?

In a situation where the service charge has already been demanded from the previous lessee 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).

I am employed by a long established estate agency in Millom where we have witnessed a number of flat sales derailed due to short leases. I have received inconsistent advice from local Millom conveyancing firms. Please can you clarify whether the owner 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 for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment has to be done prior to, or simultaneously with completion of the disposal of the property.

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 buyer.

Millom Conveyancing for Leasehold Flats - A selection of Questions you should ask Prior to Purchasing

Plenty Millom leasehold properties will have a service charge for maintenance of the building set on behalf of the freeholder. Where you buy the property you will have to pay this charge, normally quarterly accross the year. This can be anything from several hundred pounds to thousands of pounds for buildings with lifts and large common grounds. There will also be a rentcharge to be met yearly, this is usually not a significant sum, say around £50-£100 but you should to enquire as occasionally it could be prohibitively expensive. Best to be warned if window replacement or some other significant cost is anticipated to be shared between the leaseholders and will dramatically impact the level of the maintenance costs or necessitate a one time invoice. Are any of leasehold owners in dispute over their service charge liability?

Other Topics

Lease Extensions in Millom