I’m about to sell my ground floor apartment in Mulbarton.Conveyancing lawyers have not yet been instructed but I have just had a yearly maintenance charge demand – Do I pay up?

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. This will smooth the conveyancing process.

I own a leasehold flat in Mulbarton. Conveyancing and Barnsley Building Society mortgage went though with no issue. A letter has just been received from someone saying they have taken over the freehold. It included a demand for arrears of ground rent dating back to 1997. The conveyancing practitioner in Mulbarton who acted for me is not around.Any advice?

First make enquiries of the Land Registry to be sure that this person is in fact the new freeholder. There is no need to instruct a Mulbarton conveyancing firm to do this as you can do this on the Land Registry website for a few pound. You should note that in any event, even if this is the rightful landlord, under the Limitation Act 1980 the limitation period for recovery of ground rent is six years.

I am tempted by the attractive purchase price for a two maisonettes in Mulbarton both have in the region of 50 years remaining on the lease term. should I be concerned?

There are plenty of short leases in Mulbarton. The lease is a right to use the property for a prescribed time frame. As the lease shortens the value of the lease deteriorate and results in it becoming more costly to extend the lease. This is why it is advisable to extend the lease term. It is often difficulties arise selling premises with a short lease because mortgage companies may be reluctant to lend money on properties of this type. Lease enfranchisement can be a protracted process. We advise that you get professional assistance from a solicitor and surveyor with experience in this field

I've recently bought a leasehold flat in Mulbarton. Do I have any liability for service charges relating to a period prior to completion of my purchase?

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. It is an essential part 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 reputable estate agent office in Mulbarton where we have experienced a number of leasehold sales derailed as a result of short leases. I have been given inconsistent advice from local Mulbarton conveyancing firms. Please can you confirm whether the seller of a flat can commence the lease extension formalities for the buyer?

Provided that 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. This means that the proposed purchaser 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 has to be done before, or at the same time as completion of the disposal of the property.

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 buyer.

Mulbarton Conveyancing for Leasehold Flats - Sample of Questions you should consider Prior to buying

The majority of Mulbarton leasehold apartments will have a service charge for the upkeep of the building set on behalf of the management company. Where you purchase the flat you will have to meet this liability, usually quarterly accross the year. This may differ from a couple of hundred pounds to thousands of pounds for blocks with lifts and large common grounds. There will also be a ground rent to be met annual, normally this is not a significant sum, say around £50-£100 but you should to check it because on occasion it can be prohibitively expensive. For most Mulbarton leaseholds the outlay for major works tend not to be incorporated into the maintenance charges, albeit that there some managing agents in Mulbarton require tenants to contribute towards a reserve fund created for the specific purpose of establishing a fund for larger works. Please note if it is fewer than eighty years it will have adverse implications on the value of the apartment. Check with your lender that they are willing to go ahead with the loan given the lease term. Leases with less than 80 years remaining means that you will most likely have to extend the lease at some point and it is worth discovering how much this will be. Remember, in most cases you will need to own the property for a couple of years in order to be legally able to exercise a lease extension.

Other Topics

Lease Extensions in Mulbarton