I've found a house that appears to meet my requirements, at a great price which is making it all the more appealing. I have just found out that it's a leasehold rather than freehold. I am assuming that there are issues buying a house with a leasehold title in Morfa Nefyn. Conveyancing solicitors have are about to be instructed. Will my lawyers set out the implications of buying a leasehold house in Morfa Nefyn ?

The majority of houses in Morfa Nefyn are freehold rather than leasehold. In this scenario it’s worth having a local solicitor who is familiar with the area can help the conveyancing process. it is apparent that you are buying in Morfa Nefyn so you should seriously consider looking for a Morfa Nefyn conveyancing practitioner and be sure that they are used to transacting on leasehold houses. First you will need to check the number of years remaining. Being a tenant you will not be entirely free to do whatever you want to the property. The lease comes with conditions such as requiring the landlord’spermission to conduct changes to the property. It may be necessary to pay a service charge towards the maintenance of the communal areas where the property is located on an estate. Your conveyancer will advise you fully on all the issues.

I've recently bought a leasehold house in Morfa Nefyn. Do I have any liability for service charges relating to a period prior to 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. 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 ensure 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 agent office in Morfa Nefyn where we have witnessed a number of flat sales put at risk due to short leases. I have been given conflicting advice from local Morfa Nefyn conveyancing firms. Could you confirm whether the seller of a flat can start the lease extension formalities for the purchaser on completion of the sale?

Provided that 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 can avoid having to sit tight for 2 years to extend their lease. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed before, or simultaneously with completion of the sale.

Alternatively, it may be possible to extend the lease informally by agreement with the landlord 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 are your top tips when it comes to appointing a Morfa Nefyn conveyancing practice to carry out our lease extension conveyancing?

If you are instructing a conveyancer for your lease extension (regardless if they are a Morfa Nefyn conveyancing firm) it is essential that he or she should be familiar with the legislation and specialises in this area of conveyancing. We suggested that you talk with several firms including non Morfa Nefyn conveyancing practices prior to instructing a firm. If the firm is ALEP accredited then so much the better. Some following of questions might be helpful:

• What volume of lease extensions has the firm completed in Morfa Nefyn in the last year?

What are the common defects that you witness in leases for Morfa Nefyn properties?

There is nothing unique about leasehold conveyancing in Morfa Nefyn. Most leases are unique and legal mistakes in the legal wording can sometimes mean that certain provisions are erroneous. 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 property
• Insurance obligations
• A provision for the recovery of money spent for the benefit of another party.
• Maintenance charge proportions which don’t add up to the correct percentage

You will have difficulties when selling your property if you have a defective lease as they can affect a potential buyer’s ability to obtain a mortgage. HSBC Bank, Barnsley Building Society, and TSB all have very detailed requirements when it comes to what is expected in a lease. If a mortgage lender believes that the lease is defective they may refuse to grant the mortgage, obliging the purchaser to withdraw.

Leasehold Conveyancing in Morfa Nefyn - Examples of Questions you should ask before Purchasing

This question is important as a) areas can cause problems in the building as the common areas may begin to deteriorate if services are not paid for b) if the tenants have a dispute with the running of the building you will need to have full disclosure It is important to be aware if changing the roof or some other major work is due shortly that will be shared between the leaseholders and will materially increase the the service charges or require a specific invoice. The majority of Morfa Nefyn leasehold apartments will be liable to pay a service bill for maintenance of the building set by the freeholder. If you acquire the property you will have to pay this liability, normally periodically during the year. This may be anything from a couple of hundred pounds to thousands of pounds for buildings with lifts and large communal grounds. In all probability there will be a rentcharge to be met yearly, this is usually not a significant sum, say about £50-£100 but you need to enquire it because on occasion it can be surprisingly expensive.

Other Topics

Lease Extensions in Morfa Nefyn