I today plan to offer on a house that appears to tick a lot of boxes, at a reasonable price which is making it more attractive. I have just discovered that the title is leasehold as opposed to freehold. I would have thought that there are issues purchasing a leasehold house in Rayleigh. Conveyancing solicitors have are soon to be instructed. Will they explain the issues?

Most houses in Rayleigh are freehold and not leasehold. This is one of the situations where having a local solicitor used to dealing with such properties who can assist with the conveyancing process. It is clear that you are buying in Rayleigh so you should seriously consider looking for a Rayleigh conveyancing practitioner and check that they are used to dealing with leasehold houses. As a matter of priority you will need to check the number of years remaining. Being a lessee you will not be entirely free to do whatever you want with the house. The lease comes with conditions for example requiring the freeholder’sconsent to conduct alterations. It may be necessary to pay a service charge towards the upkeep of the communal areas where the property is part of an estate. Your conveyancer should report to you on the legal implications.

I am attracted to a couple of apartments in Rayleigh which have about fifty years remaining on the leases. Will this present a problem?

A lease is a legal document that entitles you to use the premises for a period of time. As the lease gets shorter the saleability of the lease reduces and results in it becoming more costly to acquire a lease extension. This is why it is often a good idea to extend the lease term. Sometimes it is difficulties arise selling premises with a short lease as mortgage companies may be unwilling to lend money on properties of this type. Lease enfranchisement can be a difficult process. We recommend you get professional assistance from a conveyancer and surveyor with experience in this field

I am employed by a long established estate agency in Rayleigh where we have experienced a few leasehold sales put at risk due to leases having less than 80 years remaining. I have been given conflicting advice from local Rayleigh conveyancing solicitors. Could you clarify whether the seller of a flat can instigate the lease extension formalities for the buyer?

As long as 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. The benefit of this is that the proposed purchaser need not have to wait 2 years to extend their lease. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed prior to, or at the same time as completion of the disposal of the property.

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 purchaser.

What advice can you give us when it comes to finding a Rayleigh conveyancing practice to deal with our lease extension?

When appointing a property lawyer for your lease extension (regardless if they are a Rayleigh conveyancing practice) it is essential that he or she should be familiar with the legislation and specialises in this area of conveyancing. We suggested that you talk with several firms including non Rayleigh conveyancing practices prior to instructing a firm. Where the conveyancing practice is ALEP accredited then so much the better. Some following of questions might be of use:

• How familiar is the practice with lease extension legislation?

What are the frequently found deficiencies that you come across in leases for Rayleigh properties?

There is nothing unique about leasehold conveyancing in Rayleigh. All leases are unique and drafting errors can sometimes mean that certain provisions are missing. The following missing provisions could result in a defective lease:

• A provision to repair to or maintain elements of the property
• Insurance obligations
• Clauses dealing with recovering service charges for expenditure on the building or common parts.
• Service charge per centages that don't add up correctly leaving a shortfall

You may 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. Yorkshire Building Society, Bank of Scotland, and Godiva Mortgages Ltd 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 problematic they may refuse to grant the mortgage, forcing the buyer to withdraw.

Rayleigh Conveyancing for Leasehold Flats - Sample of Queries Prior to Purchasing

In the main the outlay for major works are not built into the maintenance charges, albeit that a few managing agents in Rayleigh ask leaseholders to contribute towards a sinking fund created for the specific intention of establishing a fund for larger repairs or maintenance. Is anyone aware of any major works anticipated that will add a premium to the service costs? It is important to be aware whether changing the roof or some other major work is pending that will be shared amongst the tenants and may well materially increase the the maintenance costs or necessitate a one time invoice.

Other Topics

Lease Extensions in Rayleigh