I've found a house that appears to be perfect, at a reasonable price which is making it all the more appealing. I have since found out that it's a leasehold as opposed to freehold. I would have thought that there are particular concerns purchasing a house with a leasehold title in Milton Keynes. Conveyancing solicitors have not yet been appointed. Will they explain the issues?

The majority of houses in Milton Keynes are freehold rather than leasehold. In this scenario it’s worth having a local solicitor used to dealing with such properties who can assist with the conveyancing process. We note that you are buying in Milton Keynes so you should seriously consider shopping around for a Milton Keynes conveyancing solicitor and be sure that they are used to advising on leasehold houses. First you will need to check the number of years remaining. As a leaseholder you will not be entirely free to do whatever you want to the property. The lease comes with conditions for example requiring the landlord’sconsent to carry out alterations. You may also be required to pay a contribution towards the maintenance of the estate where the house is located on an estate. Your solicitor will appraise you on the various issues.

My wife and I purchased a leasehold flat in Milton Keynes. Conveyancing and Leeds Building Society 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 demand for arrears of ground rent dating back to 1997. The conveyancing solicitor in Milton Keynes who acted for me is not around.Any advice?

First make enquiries of HMLR to make sure that this person is indeed the new freeholder. There is no need to incur the fees of a Milton Keynes conveyancing lawyer to do this as it can be done on-line for £3. You should note that regardless, even if this is the rightful freeholder, under the Limitation Act 1980 no more than 6 years of rent can be collected.

Last month I purchased a leasehold flat in Milton Keynes. Am I liable to pay service charges relating to a period prior to my ownership?

In a situation 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. Strange as it may seem, your landlord may still be able to take action to forfeit the lease. A critical element 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).

Do you have any top tips for leasehold conveyancing in Milton Keynes with the intention of saving time on the sale process?

• A significant proportion of the frustration in leasehold conveyancing in Milton Keynes can be avoided where you appoint lawyers the minute your agents start marketing the property and request that they start to put together the leasehold information needed by the purchasers’ solicitors.
• In the event that you altered the property did you need the Landlord’s approval? In particular have you laid down wooden flooring? Most leases in Milton Keynes state that internal structural changes or addition of wooden flooring calls for a licence from the Landlord acquiescing to such changes. If you fail to have the paperwork in place you should not contact the landlord without contacting your lawyer in the first instance.

What makes a Milton Keynes lease unacceptable for security purposes?

Leasehold conveyancing in Milton Keynes is not unique. All leases are individual and drafting errors can sometimes mean that certain provisions are wrong. For example, if your lease is missing any of the following, it could be defective:

• A provision to repair to or maintain elements of the premises
• 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 could encounter difficulties when selling your property if you have a defective lease primarily because it impacts on the ability to obtain a mortgage on the property. National Westminster Bank, Coventry Building Society, and Bank of Ireland all have express requirements when it comes to what is expected in a lease. Where a lender has been advised by their lawyers that the lease is problematic they may refuse to grant the mortgage, obliging the buyer to withdraw.

Milton Keynes Leasehold Conveyancing - A selection of Questions you should consider Prior to Purchasing

The majority of Milton Keynes leasehold properties will be liable to pay a service bill for the upkeep of the block set on behalf of the landlord. Should you buy the property you will have to meet this amount, normally periodically throughout the year. This can differ from a couple of hundred pounds to thousands of pounds for buildings with lifts and large common areas. In all likelihood there will be a rentcharge to be met yearly, normally this is not a significant sum, say approximately £50-£100 but you should to enquire it because sometimes it could be many hundreds of pounds. How many of the leaseholders are in arrears for their maintenance charge payments? The prefered form of lease structure is a share of the freehold. In this scenario the tenants benefit from being in charge if their destiny and notwithstanding that a managing agent is usually employed where the building is bigger than a house conversion, the managing agent retained by the leaseholders.

Other Topics

Lease Extensions in Milton Keynes