I am attracted to a couple of flats in Small Heath which have approximately fifty years unexpired on the lease term. Should I regard a short lease as a deal breaker?

A lease is a right to use the property for a period of time. As the lease gets shorter the marketability of the lease reduces and results in it becoming more expensive to extend the lease. For this reason it is often a good idea to increase the term of the lease. More often than not it is difficulties arise selling premises with a short lease as mortgage lenders may be unwilling to lend money on properties of this type. Lease enfranchisement can be a protracted process. We advise that you get professional assistance from a conveyancer and surveyor with experience in this field

I am a negotiator for a busy estate agency in Small Heath where we have experienced a number of flat sales put at risk as a result of leases having less than 80 years remaining. I have received inconsistent advice from local Small Heath conveyancing firms. Please can you clarify whether the vendor of a flat can instigate the lease extension formalities for the purchaser on completion of the sale?

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 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 has to be done prior to, or at the same time as completion of the disposal of the property.

Alternatively, it may be possible 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 advice can you give us when it comes to finding a Small Heath conveyancing firm to carry out our lease extension conveyancing?

If you are instructing a property lawyer for lease extension works (regardless if they are a Small Heath conveyancing firm) it is most important that he or she should be familiar with the legislation and specialises in this area of conveyancing. We recommend that you speak with several firms including non Small Heath conveyancing practices prior to instructing a firm. If the firm is ALEP accredited then so much the better. Some following of questions could be of use:

• How experienced is the firm with lease extension legislation?
• Can they put you in touch with client in Small Heath who can give a testimonial?

Do you have any top tips for leasehold conveyancing in Small Heath from the point of view of saving time on the sale process?

• Much of the frustration in leasehold conveyancing in Small Heath can be avoided if you appoint lawyers as soon as you market your property and ask them to put together the leasehold information needed by the purchasers’ lawyers.
• The majority landlords or managing agents in Small Heath charge for supplying management packs for a leasehold property. You or your lawyers should discover the actual amount of the charges. The management information sought as soon as you have a buyer, thus accelerating the process. The average time it takes to obtain the necessary information is three weeks. It is the most frequent reason for frustration in leasehold conveyancing in Small Heath.
• If you have carried out any alterations to the residence would they have required Landlord’s approval? Have you, for example laid down wooden flooring? Small Heath leases often stipulate that internal structural changes or addition of wooden flooring calls for a licence issued by the Landlord approving such works. If you dont have the paperwork in place do not contact the landlord without checking with your solicitor in advance.
• A minority of Small Heath leases require Licence to Assign from the landlord. If this is the case, you should notify your estate agents to make sure that the purchasers put in hand bank and professional references. Any bank reference should make it clear that the buyer is able to meet 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 actual amount of the service charge so that they can pass this information on to the buyers or their solicitors.
• If you are supposed to have a share in the Management Company, you should make sure that you are holding the original share document. Obtaining a re-issued share certificate can be a time consuming formality and delays many a Small Heath conveyancing deal. Where a duplicate share certificate is necessary, you should approach the company officers or managing agents (where applicable) for this at the earliest opportunity.

When it comes to leasehold conveyancing in Small Heath what are the most common lease defects?

Leasehold conveyancing in Small Heath is not unique. All leases is drafted differently and drafting errors can sometimes mean that certain provisions are wrong. For example, if your lease is missing any of the following, it could be defective:

• Repairing obligations to or maintain elements of the premises
• A duty to insure the building
• 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

You could encounter 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. HSBC Bank, Virgin Money, and Platform Home Loans Ltd all have express requirements when it comes to what is expected in a lease. Where a lender has been advised by their lawyers that the lease does not cover certain provisions they may refuse to grant the mortgage, obliging the buyer to withdraw.

Leasehold Conveyancing in Small Heath - Examples of Questions you should ask before buying

Does the lease have more than 80 years remaining? Where a Small Heath lease has less than 80 years it will have adverse implications on the marketability of the property. It is worth checking with your bank that they are happy with remaining years on the lease. A short lease means that you will almost definitely 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 property for a couple of years in order to be legally able to extend the lease.