Sample questions relating to Royton leasehold conveyancing
My fiance and I may need to let out our Royton garden flat temporarily due to a career opportunity. We used a Royton conveyancing firm in 2003 but they have closed and we did not have the foresight to seek any advice as to whether the lease prohibits the subletting of the flat. How do we find out?
Some leases for properties in Royton do contain a provision to say that subletting is only allowed with permission. The landlord is not entitled to unreasonably withhold but, in such cases, they would need to see references. Experience dictates that problems are usually caused by unsatisfactory tenants rather than owner-occupiers and for that reason you can expect the freeholder to take up the references and consider them carefully before granting permission.
I've found a house that seems to be perfect, at a reasonable price which is making it more attractive. I have since discovered that the title is leasehold rather than freehold. I am assuming that there are particular concerns purchasing a leasehold house in Royton. Conveyancing solicitors have are soon to be instructed. Will they explain the issues?
The majority of houses in Royton are freehold and not leasehold. This is one of the situations where having a local conveyancer used to dealing with such properties who can help the conveyancing process. It is clear that you are purchasing in Royton so you should seriously consider shopping around for a Royton conveyancing solicitor and check that they are used to transacting on leasehold houses. As a matter of priority you will need to check the number of years remaining. Being a tenant you will not be entirely free to do whatever you want with the house. The lease comes with conditions such as requiring the freeholder’spermission to conduct changes to the property. You may also be required to pay a contribution towards the maintenance of the estate where the house is located on an estate. Your conveyancer will appraise you on the various issues.
I've recently bought a leasehold flat in Royton. Do I have any liability for service charges relating to a period prior to my ownership?
Where the service charge has already been demanded from the previous owner and they have not paid you would not usually be personally liable for the arrears. However, your landlord may still be able to take action to forfeit the lease. A critical element of leasehold conveyancing for your conveyancer to be sure to have an up to date clear service charge receipt before completion of your purchase. If you have a mortgage this is likely to be a requirement of your lender.
If you purchase part way through an accounting year you may be liable for charges not yet demanded even if they relate to a period prior to your purchase. In such circumstances your conveyancer would normally arrange for the seller to set aside some money to cover their part of the period (usually called a service charge retention).
What advice can you give us when it comes to choosing a Royton conveyancing firm to carry out our lease extension conveyancing?
When appointing a solicitor for lease extension works (regardless if they are a Royton conveyancing firm) it is essential that they be familiar with the legislation and specialises in this area of work. We suggested that you make enquires with two or three firms including non Royton conveyancing practices prior to instructing a firm. Where the conveyancing practice is ALEP accredited then that’s a bonus. Some following of questions might be of use:
- How familiar is the practice with lease extension legislation?
- What volume of lease extensions have they carried out in Royton in the last 12 months?
Can you provide any advice for leasehold conveyancing in Royton with the aim of expediting the sale process?
- Much of the delay in leasehold conveyancing in Royton can be bypassed if you get in touch lawyers the minute your agents start marketing the property and ask them to collate the leasehold information needed by the buyers representatives.
- In the event that you altered the property did you need the Landlord’s consent? Have you, for example laid down wooden flooring? Most leases in Royton state that internal structural changes or laying down wooden flooring calls for a licence from the Landlord consenting to such works. Should you fail to have the approvals in place you should not communicate with the landlord without checking with your solicitor before hand.
- A minority of Royton leases require Licence to Assign from the landlord. If this is the case, it would be prudent to place the estate agents on notice to make sure that the purchasers put in hand bank and professional references. Any bank reference will need to confirm that the buyers are able to meet the yearly service charge and the actual amount of the service charge should be quoted in the bank’s letter. You will therefore need to provide your estate agents with the actual amount of the service charge so that they can pass this information on to the purchasers or their lawyers.
- If you are supposed to have a share in the Management Company, you should make sure that you have the original share document. Obtaining a new share certificate is often a lengthy process and frustrates many a Royton conveyancing transaction. Where a new share certificate is required, do contact the company director and secretary or managing agents (if applicable) for this at the earliest opportunity.
- You may think that you are aware of the number of years remaining on your lease but it would be wise to double-check by asking your solicitors. A purchaser's lawyer will be unlikely to recommend their client to to exchange contracts if the remaining number of years is below 75 years. In the circumstances it is important at an early stage that you consider whether the lease term requires a lease extension. If it does, contact your solicitors before you put your home on the market for sale.
I am the registered owner of a split level flat in Royton, conveyancing formalities finalised 7 years ago. Can you give me give me an indication of the likely cost of a lease extension? Comparable flats in Royton with a long lease are worth £189,000. The ground rent is £45 invoiced annually. The lease finishes on 21st October 2090
You have 64 years unexpired we estimate the premium for your lease extension to span between £16,200 and £18,600 as well as professional fees.
The suggested premium range that we have given is a general guide to costs for renewing a lease, but we are not able to supply a more accurate figure without more detailed due diligence. Do not use this information in tribunal or court proceedings. There are no doubt other issues that need to be taken into account and clearly you should be as accurate as possible in your negotiations. Please do not take any other action based on this information without first seeking the advice of a professional.