I am hoping to put an offer on a small detached house that seems to meet my requirements, at a great price which is making it all the more appealing. I have just discovered that the title is leasehold rather than freehold. I am assuming that there are particular concerns buying a house with a leasehold title in Montpelier. Conveyancing solicitors have not yet been appointed. Will my lawyers set out the risks of buying a leasehold house in Montpelier ?

Most houses in Montpelier are freehold rather than leasehold. This is one of the situations where having a local conveyancer used to dealing with such properties who can assist with the conveyancing process. We note that you are purchasing in Montpelier so you should seriously consider looking for a Montpelier conveyancing practitioner 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 will likely included provisions such as requiring the landlord’spermission to conduct alterations. You may also be required to pay a contribution towards the maintenance of the communal areas where the property is part of an estate. Your solicitor will report to you on the legal implications.

I work for a busy estate agent office in Montpelier where we see a few flat sales jeopardised as a result of short leases. I have received contradictory information from local Montpelier conveyancing solicitors. Could you shed some light as to whether the vendor of a flat can initiate the lease extension process for the purchaser on completion of the sale?

As long as the seller has owned the lease 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 proposed purchaser need not have to sit tight for 2 years for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed before, 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 purchaser.

What advice can you give us when it comes to appointing a Montpelier conveyancing firm to carry out our lease extension conveyancing?

If you are instructing a conveyancer for lease extension works (regardless if they are a Montpelier conveyancing practice) it is essential that they be familiar with the legislation and specialises in this area of work. We recommend that you talk with two or three firms including non Montpelier 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 they are not ALEP accredited then why not?
• Can they put you in touch with client in Montpelier who can give a testimonial?

Can you provide any top tips for leasehold conveyancing in Montpelier with the aim of speeding up the sale process?

• A significant proportion of the frustration in leasehold conveyancing in Montpelier can be reduced if you appoint lawyers the minute you market your property and request that they start to put together the leasehold information which will be required by the buyers solicitors.
• If you have carried out any alterations to the property would they have required Landlord’s permission? In particular have you laid down wooden flooring? Montpelier leases often stipulate that internal structural alterations or addition of wooden flooring necessitate a licence from the Landlord approving such works. Where you fail to have the consents in place you should not communicate with the landlord without checking with your solicitor in advance.
• A minority of Montpelier leases require Licence to Assign from the landlord. If this applies to your lease, it would be prudent to notify your estate agents to make sure that the purchasers obtain bank and professional references. The bank reference should make it clear that the buyer is able to meet the yearly service charge and the actual amount of the service charge should be quoted in the bank’s letter. You will therefore need to provide your estate agents with the service charge figures so that they can pass this information on to the purchasers or their lawyers.
• If you are supposed to have a share in the freehold, you should make sure that you hold the original share document. Arranging a re-issued share certificate can be a lengthy formality and delays many a Montpelier home move. If a duplicate share certificate is needed, you should approach the company officers or managing agents (if relevant) for this at the earliest opportunity.
• You may think that you are aware of the number of years left on your lease but it would be advisable verify this via your conveyancers. A purchaser's lawyer will be unlikely to recommend their client to where the remaining number of years is less than 80 years. It is therefore important at an as soon as possible that you identify whether the lease for your property needs extending. If it does, contact your solicitors before you put your property on the market for sale.

What makes a Montpelier lease defective?

Leasehold conveyancing in Montpelier is not unique. All leases are unique and drafting errors can result in certain sections are wrong. The following missing provisions could result in a defective lease:

• A provision to repair to or maintain elements of the property
• Insurance obligations
• Clauses dealing with recovering service charges for expenditure on the building or common parts.
• Service charge per centages that don't add up correctly leaving a shortfall

You may encounter difficulties when selling your property if you have a defective lease as they can affect a potential buyer’s ability to obtain a mortgage. Accord Mortgages Ltd, Barnsley Building Society, and Aldermore all have express conveyancing instructions when it comes to what is expected in a lease. If a mortgage lender believes that the lease is defective they may refuse to provide security, obliging the buyer to pull out.

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

The prefered form of lease arrangement is where the freehold title is owned by the leaseholders. In this arrangement the leaseholders have being in charge if their destiny and although a managing agent is usually retained where it is bigger than a house conversion, the managing agent employed by the leaseholders. How much is the ground rent and service charge? Who is in charge of the building?