Recently asked questions relating to Nantyglo leasehold conveyancing
I would like to let out my leasehold flat in Nantyglo. Conveyancing solicitor who did the purchase is retired - so can't ask her. Is permission from the freeholder required?
Even though your previous Nantyglo conveyancing solicitor is not available you can review your lease to see if it allows you to sublet the apartment. The accepted inference is that if the deeds are silent, subletting is allowed. Quite often there is a prerequisite that you need to seek permission from your landlord or some other party prior to subletting. The net result is that you cannot sublet in the absence of first obtaining permission. The consent must not not be unreasonably withheld. If the lease does not allow you to sublet you should ask your landlord if they are willing to waive this restriction.
I am looking at a couple of flats in Nantyglo both have approximately fifty years left on the leases. Will this present a problem?
There are no two ways about it. A leasehold apartment in Nantyglo is a wasting asset as a result of the reducing lease term. The nearer the lease gets to zero years unexpired, the more it adversely affects the marketability of the premises. For most buyers and mortgage companies, leases with under 75 years become less and less marketable. On a more upbeat note, leaseholders can extend their leases by serving a Section 42 Notice. One stipulation is that they must have owned the property for two years (unlike a Section 13 notice for purchasing the freehold, when leaseholders can participate from day one of ownership). When successful, they will have the right to an extension of 90 years to the current term and ground rent is effectively reduced to zero. Before moving forward with a purchase of a residence with a short lease term remaining you should talk to a solicitor specialising in lease extensions and leasehold enfranchisement. We are are happy to put you in touch with Nantyglo conveyancing experts who will explain the options available to you during an initial telephone conversation free of charge. A more straightforward and quicker method of extending would be to contact your landlord directly and sound him out on the prospect of extending the lease You may find he or she is happy to negotiate informally and willing to consider your offer straight off, without having to involve anyone else. This will save you time and money and it could help you reach a lower price on the lease. You need to ensure that the agreed terms represent good long-term value compared with the standard benefits of the Section 42 Notice and that onerous clauses are not inserted into any redrafting of the lease.
I work for a reputable estate agent office in Nantyglo where we have experienced a few flat sales put at risk due to short leases. I have been given contradictory information from local Nantyglo conveyancing firms. Please can you confirm whether the vendor of a flat can instigate 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 kick-start 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 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 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 buyer.
Can you provide any advice for leasehold conveyancing in Nantyglo from the perspective of speeding up the sale process?
- A significant proportion of the frustration in leasehold conveyancing in Nantyglo can be bypassed where you instruct lawyers the minute your agents start advertising the property and ask them to put together the leasehold information which will be required by the buyers conveyancers.
- A minority of Nantyglo leases require Licence to Assign from the landlord. If this is the case, you should notify your estate agents to make sure that the purchasers put in hand financial (bank) and professional references. Any bank reference should make it clear that the buyer is financially capable of paying the annual 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 solicitors.
Are there frequently found defects that you see in leases for Nantyglo properties?
Leasehold conveyancing in Nantyglo is not unique. All leases are unique and legal mistakes in the legal wording can sometimes mean that certain clauses are not included. The following missing provisions could result in a defective lease:
- A provision to repair to or maintain parts 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
A defective lease will likely cause problems when trying to sell a property primarily because it impacts on the ability to obtain a mortgage on the property. National Westminster Bank, Chelsea Building Society, and Clydesdale all have express requirements when it comes to what is expected in a lease. If a mortgage lender believes that the lease is problematic they may refuse to grant the mortgage, forcing the purchaser to pull out.
Nantyglo Leasehold Conveyancing - Sample of Questions you should consider Prior to Purchasing
This question is useful as a) areas can result in problems in the block as the common areas may begin to deteriorate if repairs remain unpaid b) if the tenants have a dispute with the managing agents you will wish to have complete disclosure
It is important to be aware whether redecorating or some other significant cost is due in the foreseeable future that will be shared amongst the leasehold owners and could well dramatically impact the level of the maintenance costs or require a one time payment.
Many Nantyglo leasehold properties will incur a service bill for maintenance of the building levied on behalf of the freeholder. If you buy the apartment you will have to meet this liability, normally in instalments throughout the year. This may be anything from a couple of hundred pounds to thousands of pounds for blocks with lifts and large communal grounds. In all probability there will be a ground rent to be met yearly, this is usually not a large figure, say approximately £50-£100 but you need to check it because on occasion it could be many hundreds of pounds.