Penrith leasehold conveyancing: Q and A’s
I am tempted by the attractive purchase price for a couple of flats in Penrith which have in the region of fifty years left on the leases. Will this present a problem?
A lease is a legal document that entitles you to use the premises for a prescribed time frame. As a lease shortens the saleability of the lease reduces and it becomes more costly to extend the lease. This is why it is often a good idea to extend the lease term. Sometimes it is difficult to sell a property with a short lease because mortgage companies may be reluctant to lend money on properties of this type. Lease extension can be a difficult process. We recommend you get professional assistance from a solicitor and surveyor with experience in this field
I am a negotiator for a long established estate agent office in Penrith where we have experienced a number of flat sales derailed due to leases having less than 80 years remaining. I have received conflicting advice from local Penrith conveyancing firms. Could you clarify 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 start the lease extension process and assign the benefit of the notice to the purchaser. This means that the buyer need not have to wait 2 years for a lease extension. 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 buyer.
What advice can you give us when it comes to finding a Penrith conveyancing firm to carry out our lease extension conveyancing?
If you are instructing a property lawyer for your lease extension (regardless if they are a Penrith conveyancing firm) it is most important that he or she should be familiar with the legislation and specialises in this area of work. We recommend that you speak with several firms including non Penrith conveyancing practices prior to instructing a firm. If the firm is ALEP accredited then so much the better. Some following of questions could be useful:
- If they are not ALEP accredited then what is the reason?
Do you have any advice for leasehold conveyancing in Penrith with the purpose of speeding up the sale process?
- A significant proportion of the delay in leasehold conveyancing in Penrith can be bypassed where you instruct lawyers the minute your agents start marketing the property and request that they start to collate the leasehold information which will be required by the purchasers’ solicitors.
- Many freeholders or Management Companies in Penrith levy fees for providing management packs for a leasehold premises. You or your lawyers should discover the actual amount of the charges. The management pack can be applied for on or before finding a buyer, thus reducing delays. The typical amount of time it takes to obtain the necessary information is three weeks. It is the most common cause of frustration in leasehold conveyancing in Penrith.
If all goes to plan we aim to complete the sale of our £500000 apartment in Penrith next week. The managing agents has quoted £408 for Certificate of Compliance, insurance certificate and 3 years service charge statements. Is it legal for a freeholder to charge exorbitant fees for a leasehold conveyance in Penrith?
Penrith conveyancing on leasehold flats often necessitates the buyer’s lawyer sending questions for the landlord to answer. Although the landlord is not legally bound to respond to these enquiries most will be willing to do so. They may charge a reasonable charge for responding to enquiries or supplying documentation. There is no set fee. The average costs for the paperwork that you are referring to is over three hundred pounds, in some cases it exceeds £800. The management information fee levied by the landlord must be accompanied by a synopsis of entitlements and obligations in respect of administration fees, without which the invoice is technically not due. In reality you have little choice but to pay whatever is requested of you should you wish to sell the property.
Leasehold Conveyancing in Penrith - A selection of Queries before buying
The prefered form of lease structure is if the freehold reversion is owned by the leaseholders. In this scenario the tenants enjoy control and even though a managing agent is frequently employed if it is bigger than a house conversion, the managing agent is directed by the tenants.
Best to be warned if a new roof is being installed or some other major work is anticipated to be shared by the leasehold owners and could well materially impact the level of the service costs or necessitate a specific invoice.
How much is the maintenance charge and ground rent on the flat?