Shoreham By Sea leasehold conveyancing: Q and A’s
Having had my offer accepted I require leasehold conveyancing in Shoreham By Sea. Before I get started I want to be sure as to the number of years remaining on the lease.
If the lease is recorded at the land registry - and most are in Shoreham By Sea - then the leasehold title will always include the basic details of the lease, namely the date; the term; and the original parties. From a conveyancing perspective such details then enable any prospective buyer and lender to confirm that any lease they are looking at is the one relevant to that title.For any other purpose, such as confirming how long the term was granted for and calculating what is left, then the register should be sufficient on it's own.
Due to complete next month on a leasehold property in Shoreham By Sea. Conveyancing solicitors inform me that they report fully on Monday. Are there areas in the report that I should be focusing on?
Your report on title for your leasehold conveyancing in Shoreham By Sea should include some of the following:
- You should be sent a copy of the lease
Last month I purchased a leasehold house in Shoreham By Sea. Am I liable to pay service charges relating to a period prior to my ownership?
In a situation 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. 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 ensure 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 work for a busy estate agency in Shoreham By Sea where we have witnessed a number of leasehold sales derailed as a result of short leases. I have received conflicting advice from local Shoreham By Sea conveyancing solicitors. Can you clarify whether the vendor of a flat can commence 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. This means that the buyer can avoid having to wait 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 disposal of the property.
An alternative approach is to agree the lease extension with the freeholder 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 makes a Shoreham By Sea lease unacceptable for security purposes?
There is nothing unique about leasehold conveyancing in Shoreham By Sea. All leases is drafted differently and drafting errors can sometimes mean that certain clauses are missing. The following missing provisions could result in a defective lease:
- Repairing obligations to or maintain parts of the property
- A duty to insure the building
- 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 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. Halifax, The Mortgage Works, and Alliance & Leicester all have express requirements when it comes to what is expected in a lease. If a mortgage lender believes that the lease is defective they may refuse to provide security, forcing the buyer to withdraw.
Leasehold Conveyancing in Shoreham By Sea - Sample of Queries before buying
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The answer will be important as a) areas may cause problems for the block as the common areas may start to deteriorate if repairs remain unpaid b) if the leaseholders have an issue with the running of the building you will want to have full disclosure
Who are the managing agents?
Its a good idea to find out as much as possible about the managing agents as they will either make your life much easier or uncomfortable. Being a leasehold owner you will be at the mercy of the managing agents both financially and when it comes to practical matters like the upkeep of the common parts. Enquire of prospective neighbours what they think of them. Finally, be sure you discover the dates that the maintenance charges are due to the relevant party and specifically what you get for your money.
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