I’m about to sell my ground floor apartment in Shipston on Stour.Conveyancing is yet to be initiated but I have just had a yearly service charge demand – Do I pay up?

Your conveyancing lawyer is likely to suggest that you should pay the invoice as normal because all ground rent and service charges will be apportioned on completion, so you will be reimbursed by the buyer for the period running from after the completion date to the next payment date. Most management companies will not acknowledge the buyer until the service charges have been paid and are up to date so it is important for both buyer and seller for the seller to show that they are up to date. Having a clear account will assist your cause and will leave you no worse off financially.

I am attracted to a couple of flats in Shipston on Stour which have about forty five years remaining on the lease term. Do I need to be concerned?

There are no two ways about it. A leasehold apartment in Shipston on Stour is a deteriorating asset as a result of the shortening lease. The closer the lease gets to zero years unexpired, the more it adversely affects the salability of the premises. The majority of purchasers and banks, leases with less than eighty years become less and less attractive. On a more positive note, leaseholders can extend their leases by serving a Section 42 Notice. One stipulation is that they must have owned the premises for two years (unlike a Section 13 notice for purchasing the freehold, when leaseholders can participate from day one of ownership). When successful, they will have the right to an extension of 90 years to the current term and ground rent is effectively reduced to zero. Before moving forward with a purchase of premises with a short lease term remaining you should talk to a solicitor specialising in lease extensions and leasehold enfranchisement. We are are happy to put you in touch with Shipston on Stour conveyancing experts who will explain the options available to you during an initial telephone conversation free of charge. More often than not it is possible to negotiate informally with the freeholder to extend the lease They may agree to a smaller lump sum and an increase in the ground rent, but to shorter extension terms in return. You need to ensure that the agreed terms represent good long-term value compared with the standard benefits of the Section 42 Notice and that onerous clauses are not inserted into any redrafting of the lease.

Last month I purchased a leasehold house in Shipston on Stour. Do I have any liability for service charges for periods before my ownership?

Where the service charge has already been demanded from the previous lessee and they have not paid you would not usually be personally liable for the arrears. Strange as it may seem, 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).

I am a negotiator for a busy estate agent office in Shipston on Stour where we have experienced a number of leasehold sales put at risk as a result of short leases. I have received conflicting advice from local Shipston on Stour conveyancing solicitors. Could you confirm whether the owner of a flat can initiate the lease extension process for the buyer?

As long as the seller has been the owner 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. The benefit of this is that the proposed purchaser need not have to sit tight for 2 years to extend their lease. Both sets of lawyers will agree to form of assignment. The assignment has to be done before, or simultaneously with 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 buyer.

Can you offer any advice when it comes to appointing a Shipston on Stour conveyancing firm to deal with our lease extension?

If you are instructing a solicitor for lease extension works (regardless if they are a Shipston on Stour conveyancing firm) it is most important that they be familiar with the legislation and specialises in this area of work. We recommend that you speak with two or three firms including non Shipston on Stour 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 useful:

• Can they put you in touch with client in Shipston on Stour who can give a testimonial?

Leasehold Conveyancing in Shipston on Stour - A selection of Questions you should ask before buying

The answer will be important as a) areas can result in problems for the building as the common areas may start to deteriorate where services remain unpaid b) if the tenants have a dispute with the managing agents you will wish to know about it It would be wise to find out if there are any onerous restrictions in the lease. By way of example it is reasonably common in Shipston on Stour leases that pets are not permitted in certain buildings in Shipston on Stour. If you love the apartmentin Shipston on Stour yet your dog is not allowed to live with you then you will be presented with a hard determination. It is important to be aware whether a new roof is being put on or some other major work is pending to be shared by the leasehold owners and may well materially increase the the service charges or necessitate a one off payment.

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Lease Extensions in Shipston on Stour