I have just appointed agents to market my garden apartment in New Milton.Conveyancing is yet to be initiated but I have just received a half-yearly service charge demand – should I leave it to the buyer to sort out?

The sensible thing to do is clear 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 until 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.

My wife and I purchased a leasehold flat in New Milton. Conveyancing and Alliance & Leicester mortgage went though with no issue. A letter has just been received from someone claiming to own the reversionary interest in the property. It included a ground rent demand for rent dating back to 1992. The conveyancing solicitor in New Milton who previously acted has long since retired.Any advice?

First make enquiries of HMLR to be sure that the individual purporting to own the freehold is indeed the new freeholder. You do not need to incur the fees of a New Milton conveyancing practitioner to do this as you can do this on the Land Registry website for less than a fiver. Rest assured that in any event, even if this is the rightful freeholder, under the Limitation Act 1980 no more than 6 years of rent can be collected.

What are your top tips when it comes to choosing a New Milton conveyancing practice to carry out our lease extension conveyancing?

If you are instructing a solicitor for your lease extension (regardless if they are a New Milton conveyancing firm) it is essential that they be familiar with the legislation and specialises in this area of conveyancing. We suggested that you make enquires with two or three firms including non New Milton conveyancing practices prior to instructing a firm. Where the conveyancing practice is ALEP accredited then that’s a bonus. Some following of questions might be of use:

• Can they put you in touch with client in New Milton who can give a testimonial?

We expect to complete our sale of a £425000 maisonette in New Milton on Wednesday in a week. The managing agents has quoted £348 for Certificate of Compliance, building insurance schedule and 3 years statements of service charge. Is the landlord entitled to charge such fees for a flat conveyance in New Milton?

New Milton conveyancing on leasehold apartments usually requires the purchaser’s lawyer submitting enquiries for the landlord to answer. Although the landlord is under no legal obligation to address these enquiries the majority will be willing to assist. They may invoice a reasonable administration fee for responding to enquiries or supplying documentation. There is no set fee. The average costs for the information that you are referring to is £350, in some cases it exceeds £800. The administration charge demanded by the landlord must be sent together with a summary of entitlements and obligations in respect of administration charges, otherwise the invoice is technically not due. In reality you have no option but to pay whatever is demanded should you wish to exchange contracts with the buyer.

What are the frequently found defects that you witness in leases for New Milton properties?

Leasehold conveyancing in New Milton is not unique. All leases is drafted differently and legal mistakes in the legal wording can result in certain provisions are not included. The following missing provisions could result in a defective lease:

• Repairing obligations to or maintain parts of the property
• Insurance obligations
• Clauses dealing with recovering service charges for expenditure on the building or common parts.
• Maintenance charge proportions which don’t add up to the correct percentage

You could 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. Lloyds TSB Bank, The Royal Bank of Scotland, and Bank of Ireland all have very detailed 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 grant the mortgage, forcing the purchaser to withdraw.

Leasehold Conveyancing in New Milton - Sample of Queries before Purchasing

Best to be warned if window replacement or some other major work is coming up that will be shared between the leasehold owners and will dramatically increase the the service costs or require a one time payment. Does the lease have onerous restrictions? The prefered form of lease structure is where the freehold title is owned by the leaseholders. In this scenario the leaseholders enjoy being in charge if their destiny and even though a managing agent is often retained where the building is bigger than a house conversion, the managing agent is directed by the tenants.

Other Topics

Lease Extensions in New Milton