Northwich leasehold conveyancing: Q and A’s
I've found a house that seems to be perfect, at a great figure which is making it more attractive. I have since found out that the title is leasehold as opposed to freehold. I am assuming that there are issues buying a leasehold house in Northwich. Conveyancing lawyers have not yet been appointed. Will my lawyers set out the implications of buying a leasehold house in Northwich ?
Most houses in Northwich are freehold and not leasehold. In this scenario it’s worth having a local conveyancer used to dealing with such properties who can help the conveyancing process. It is clear that you are purchasing in Northwich so you should seriously consider shopping around for a Northwich conveyancing solicitor and be sure that they are used to transacting on leasehold houses. First you will need to check the unexpired lease term. As a leaseholder you will not be at liberty to do whatever you want with the house. The lease will likely included provisions such as requiring the freeholder’spermission to carry out alterations. It may be necessary to pay a maintenance charge towards the upkeep of the estate where the property is part of an estate. Your solicitor will report to you on the legal implications.
I am tempted by the attractive purchase price for a couple of flats in Northwich which have about fifty years unexpired on the lease term. Should I regard a short lease as a deal breaker?
There are plenty of short leases in Northwich. The lease is a legal document that entitles you to use the premises for a period of time. As a lease shortens the value of the lease reduces and results in it becoming more costly to acquire a lease extension. This is why it is generally wise to increase the term of the lease. More often than not it is difficult to sell a property with a short lease because mortgage lenders may be reluctant to lend money on properties of this type. Lease enfranchisement can be a protracted process. We advise that you seek professional assistance from a conveyancer and surveyor with experience in this area
I work for a busy estate agency in Northwich where we have witnessed a number of flat sales derailed due to short leases. I have received contradictory information from local Northwich conveyancing firms. Could you confirm 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 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 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 has to be done prior to, or at the same time as completion of the sale.
An alternative approach is 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 top tips for leasehold conveyancing in Northwich from the point of view of saving time on the sale process?
- Much of the frustration in leasehold conveyancing in Northwich can be reduced if you appoint lawyers the minute you market your property and ask them to put together the leasehold documentation which will be required by the buyers conveyancers.
- Many freeholders or managing agents in Northwich levy fees for providing management packs for a leasehold property. You or your lawyers should enquire as to the actual amount of the charges. The management information can be applied for on or before finding a buyer, thus accelerating the process. The average time it takes to receive management information is three weeks. It is the most usual cause of delay in leasehold conveyancing in Northwich.
Completion in due on the sale of our £150000 garden flat in Northwich in seven days. The freeholder has quoted £300 for Landlord’s certificate, building insurance schedule and previous years service charge statements. Is the landlord entitled to charge an administration fee for a leasehold conveyance in Northwich?
Northwich conveyancing on leasehold maisonettes more often than not necessitates the purchaser’s conveyancer sending questions for the landlord to address. Although the landlord is not legally bound to answer these enquiries the majority will be content to do so. They may charge a reasonable administration fee for answering questions or supplying documentation. There is no upper cap for such fees. The average fee for the information that you are referring to is £350, in some transactions it is above £800. The administration charge levied by the landlord must be sent together with a summary of rights and obligations in respect of administration fees, otherwise the invoice is not strictly payable. In reality you have no choice but to pay whatever is requested of you if you want to exchange contracts with the buyer.
Northwich Leasehold Conveyancing - Sample of Queries before buying
Who are the managing agents?
Are there any major works in the near future that will likely add a premium to the service costs?
It would be wise to discover as much as possible about the managing agents as they can either make living at the property much simpler or uncomfortable. Being a leasehold owner you will be at the mercy of the managing agents both financially and when it comes to practical matters such as the tidiness of the communal areas. Ask other tenants what they think of their service. In conclusion, investigate as to the dates that you are obliged pay the service charge to the managing agents and specifically what you get for your money.