I today plan to offer on a house that seems to meet my requirements, at a great figure which is making it more attractive. I have subsequently found out that it's a leasehold rather than freehold. I would have thought that there are issues buying a leasehold house in Pickering. Conveyancing advisers have are soon to be instructed. Will my lawyers set out the implications of buying a leasehold house in Pickering ?

The majority of houses in Pickering are freehold rather than leasehold. In this scenario it’s worth having a local solicitor used to dealing with such properties who can assist with the conveyancing process. It is clear that you are purchasing in Pickering in which case you should be looking for a Pickering conveyancing practitioner and check that they are used to advising on leasehold houses. As a matter of priority 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 comes with conditions for example obtaining the freeholder’spermission to conduct changes to the property. It may be necessary to pay a service charge towards the maintenance of the communal areas where the house is located on an estate. Your solicitor should appraise you on the various issues.

I am tempted by the attractive purchase price for a couple of flats in Pickering both have about 50 years unexpired on the lease term. Will this present a problem?

There are plenty of short leases in Pickering. The lease is a right to use the property for a prescribed time frame. As a lease gets shorter the saleability of the lease deteriorate and it becomes more expensive to acquire a lease extension. This is why it is advisable to increase the term of the lease. It is often difficult to sell a property with a short lease as mortgage companies may be reluctant to lend money on such properties. Lease extension can be a protracted process. We advise that you get professional help from a conveyancer and surveyor with experience in this arena

I am a negotiator for a busy estate agent office in Pickering where we have witnessed a number of leasehold sales put at risk as a result of leases having less than 80 years remaining. I have received contradictory information from local Pickering conveyancing firms. Can you clarify whether the seller of a flat can start 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 start the lease extension process and assign the benefit of the notice to the purchaser. This means that the buyer can avoid having 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 at the same time as 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 are your top tips when it comes to choosing a Pickering conveyancing firm to deal with our lease extension?

When appointing a property lawyer for your lease extension (regardless if they are a Pickering conveyancing firm) it is essential that he or she should be familiar with the legislation and specialises in this area of work. We suggested that you talk with two or three firms including non Pickering conveyancing practices prior to instructing a firm. If the firm is ALEP accredited then that’s a bonus. Some following of questions could be of use:

• How experienced is the firm with lease extension legislation?

All being well we will complete the disposal of our £225000 apartment in Pickering in just under a week. The managing agents has quoted £360 for Certificate of Compliance, insurance certificate and 3 years statements of service charge. Is it legal for a freeholder to charge such fees for a flat conveyance in Pickering?

Pickering conveyancing on leasehold apartments normally requires the purchaser’s lawyer submitting questions for the landlord to address. Although the landlord is not legally bound to respond to such questions the majority will be content to assist. They are entitled invoice a reasonable administration fee for answering enquiries or supplying documentation. There is no upper cap for such fees. The average costs for the information that you are referring to is over three hundred pounds, in some cases it is above £800. The administration charge invoiced by the landlord must be sent together with a synopsis of entitlements and obligations in respect of administration charges, without which the invoice is technically not due. In reality one has no choice but to pay whatever is requested of you if you want to sell the property.

I purchased a studio flat in Pickering, conveyancing formalities finalised in 2008. Can you let me have an estimated range of the fair premium for a lease extension? Corresponding flats in Pickering with an extended lease are worth £185,000. The average or mid-range amount of ground rent is £65 invoiced annually. The lease runs out on 21st October 2083

With only 57 years remaining on your lease we estimate the premium for your lease extension to span between £21,900 and £25,200 as well as legals.

The suggested premium range above a general guide to costs for extending a lease, but we are not able to supply the actual costs without more comprehensive due diligence. Do not use the figures in a Notice of Claim or as an informal offer. There may be additional issues that need to be considered and you obviously want to be as accurate as possible in your negotiations. Neither should you take any other action based on this information before getting professional advice.

Other Topics

Lease Extensions in Pickering