Common questions relating to Port Isaac leasehold conveyancing
I am tempted by the attractive purchase price for a two apartments in Port Isaac which have about forty five years unexpired on the leases. Should I regard a short lease as a deal breaker?
A lease is a legal document that entitles you to use the premises for a period of time. As a lease gets shorter the saleability of the lease deteriorate and it becomes more costly to acquire a lease extension. For this reason it is generally wise to increase the term of the lease. It is often difficult to sell a property with a short lease as mortgage companies less inclined to grant a loan on such properties. Lease enfranchisement can be a protracted process. We advise that you seek professional help from a solicitor and surveyor with experience in this arena
I work for a long established estate agency in Port Isaac where we see a number of flat sales put at risk due to short leases. I have been given inconsistent advice from local Port Isaac conveyancing solicitors. Can you confirm whether the vendor of a flat can instigate the lease extension process 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 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 has to be done before, 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.
What advice can you give us when it comes to finding a Port Isaac conveyancing practice to carry out our lease extension conveyancing?
If you are instructing a property lawyer for your lease extension (regardless if they are a Port Isaac conveyancing practice) it is imperative that he or she should be familiar with the legislation and specialises in this area of work. We advise that you make enquires with two or three firms including non Port Isaac conveyancing practices before you instructing a firm. If the firm is ALEP accredited then so much the better. Some following of questions could be of use:
- Can they put you in touch with client in Port Isaac who can give a testimonial?
Can you provide any advice for leasehold conveyancing in Port Isaac with the purpose of expediting the sale process?
- A significant proportion of the delay in leasehold conveyancing in Port Isaac can be bypassed if you instruct lawyers the minute you market your property and ask them to collate the leasehold documentation which will be required by the buyers conveyancers.
- In the event that you altered the property did you need the Landlord’s approval? Have you, for example laid down wooden flooring? Most leases in Port Isaac state that internal structural changes or addition of wooden flooring calls for a licence issued by the Landlord acquiescing to such works. Should you dont have the approvals to hand you should not communicate with the landlord without checking with your conveyancer before hand.
Are there common problems that you come across in leases for Port Isaac properties?
Leasehold conveyancing in Port Isaac is not unique. All leases is drafted differently and drafting errors can result in certain provisions are erroneous. For example, if your lease is missing any of the following, it could be defective:
- Repairing obligations to or maintain elements of the premises
- A duty to insure the building
- 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
You could have a problem when selling your property if you have a defective lease primarily because it impacts on the ability to obtain a mortgage on the property. Santander, The Royal Bank of Scotland, and Platform Home Loans Ltd all have express conveyancing instructions when it comes to what is expected in a lease. Where a lender has been advised by their lawyers that the lease does not cover certain provisions they may refuse to provide security, forcing the buyer to pull out.
I inherited a studio flat in Port Isaac, conveyancing was carried out half a dozen years ago. How much will my lease extension cost? Comparable flats in Port Isaac with a long lease are worth £202,000. The average or mid-range amount of ground rent is £45 charged once a year. The lease terminates on 21st October 2077
With 56 years left to run the likely cost is going to be between £26,600 and £30,800 plus professional fees.
The figure above a general guide to costs for extending a lease, but we cannot give you the actual costs without more comprehensive due diligence. You should not use the figures in a Notice of Claim or as an informal offer. There are no doubt other issues that need to be considered and clearly you want to be as accurate as possible in your negotiations. Neither should you move forward placing reliance on this information without first seeking the advice of a professional.