Expecting to sign contracts shortly on a leasehold property in Saltash. Conveyancing solicitors have said that they report fully tomorrow. What should I be looking out for?

The report on title for your leasehold conveyancing in Saltash should include some of the following:

• Does the lease require carpeting throughout thus preventing wood flooring?
• Ground rent - how much and when you need to pay, and also know whether this will change in the future
• Whether your lease has a provision for a reserve fund?
• You should have a good understanding of the insurance provisions
• Changes to the flat (alterations and additions)
• Responsibility for repairing the window frames
• What options are open to you if a neighbour is in violation of a provision in their lease?

I've found a house that seems to tick a lot of boxes, at a reasonable price which is making it more attractive. I have just found out that the title is leasehold rather than freehold. I am assuming that there are particular concerns purchasing a house with a leasehold title in Saltash. Conveyancing solicitors have are soon to be instructed. Will my lawyers set out the risks of buying a leasehold house in Saltash ?

Most houses in Saltash are freehold rather than leasehold. This is one of the situations where having a local solicitor used to dealing with such properties who can help the conveyancing process. it is apparent that you are buying in Saltash so you should seriously consider shopping around for a Saltash conveyancing practitioner and check that they have experience in transacting on leasehold houses. First you will need to check the unexpired lease term. As a lessee you will not be at liberty to do whatever you want with the house. The lease comes with conditions for example requiring the landlord’spermission to carry out alterations. You may also be required to pay a contribution towards the maintenance of the estate where the house is located on an estate. Your solicitor should report to you on the legal implications.

I am a negotiator for a reputable estate agency in Saltash where we see a few leasehold sales derailed due to leases having less than 80 years remaining. I have been given contradictory information from local Saltash conveyancing solicitors. Please can you confirm whether the seller of a flat can instigate the lease extension process for the purchaser on completion of the sale?

As long as the seller has owned the lease for at least 2 years it is possible, to serve a Section 42 notice to commence the lease extension process and assign the benefit of the notice to the purchaser. This means that the buyer need not have to sit tight for 2 years for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed before, 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 purchaser.

Do you have any top tips for leasehold conveyancing in Saltash with the purpose of saving time on the sale process?

• A significant proportion of the delay in leasehold conveyancing in Saltash can be reduced if you get in touch lawyers the minute you market your property and request that they start to collate the leasehold information needed by the buyers conveyancers.
• If you have carried out any alterations to the residence would they have required Landlord’s permission? In particular have you installed wooden flooring? Saltash leases often stipulate that internal structural alterations or laying down wooden flooring require a licence issued by the Landlord approving such changes. Where you dont have the paperwork in place do not contact the landlord without contacting your conveyancer first.
• Some Saltash leases require Landlord’s consent to the sale and approval of the buyers. If this is the case, you should place the estate agents on notice to make sure that the purchasers obtain financial (bank) and professional references. Any bank reference will need to confirm that the buyers are financially capable of paying the annual 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 service charge figures so that they can pass this information on to the buyers or their solicitors.
• If you have had any disputes with your landlord or managing agents it is essential that these are settled prior to the flat being marketed. The purchasers and their solicitors will be nervous about purchasing a property where there is an ongoing dispute. You may have to bite the bullet and discharge any arrears of service charge or settle the dispute prior to completion of the sale. It is therefore preferable to have any dispute settled ahead of the contract papers being issued to the buyers’ solicitors. You are still duty bound to disclose details of the dispute to the buyers, but it is clearly preferable to reveal the dispute as over as opposed to unsettled.
• If you hold a share in a the freehold, you should make sure that you are holding the original share certificate. Arranging a replacement share certificate can be a time consuming formality and delays many a Saltash conveyancing deal. If a duplicate share is necessary, do contact the company director and secretary or managing agents (if applicable) for this at the earliest opportunity.

What makes a Saltash lease problematic?

There is nothing unique about leasehold conveyancing in Saltash. All leases is drafted differently and drafting errors can sometimes mean that certain clauses are not included. For example, if your lease is missing any of the following, it could be defective:

• Repairing obligations to or maintain parts of the property
• Insurance obligations
• 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

A defective lease can cause problems when trying to sell a property primarily because it impacts on the ability to obtain a mortgage on the property. Birmingham Midshires, Bank of Scotland, and Alliance & Leicester all have express conveyancing instructions when it comes to what is expected in a lease. If a mortgage lender believes that the lease does not cover certain provisions they may refuse to provide security, forcing the purchaser to withdraw.

Leasehold Conveyancing in Saltash - A selection of Queries before buying

Please note if it is fewer than eighty years it will affect the marketability of the apartment. Check with your bank that they are happy with the length of the lease. A short lease means that you will most likely have to extend the lease sooner rather than later and it is worth discovering what this will be. Remember, in most cases you would need to own the residence for two years in order to be eligible to exercise a lease extension. Are any of leasehold owners in arrears of their service charge liability?