I’m about to sell my 2 bed flat in Smithfield.Conveyancing solicitors are to be appointed soon but I have just had a half-yearly service charge demand – Do I pay up?

The sensible thing to do is clear 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 managing agents will not acknowledge the buyer unless 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 hoping to put an offer on a small detached house that appears to meet my requirements, at a reasonable price which is making it more attractive. I have subsequently been informed that the title is leasehold rather than freehold. I would have thought that there are particular concerns purchasing a leasehold house in Smithfield. Conveyancing lawyers have are about to be appointed. Will they explain the issues?

The majority of houses in Smithfield are freehold and not leasehold. This is one of the situations where having a local solicitor who is familiar with the area can help the conveyancing process. It is clear that you are purchasing in Smithfield in which case you should be shopping around for a Smithfield conveyancing practitioner and be sure that they are used to transacting on leasehold houses. First you will need to check the number of years remaining. As a leaseholder you will not be at liberty to do whatever you want with the house. The lease comes with conditions for example requiring the freeholder’spermission to carry out changes to the property. It may be necessary to pay a service charge towards the upkeep of the estate where the house is part of an estate. Your conveyancer should appraise you on the various issues.

I am tempted by the attractive purchase price for a two apartments in Smithfield which have about forty five years remaining on the leases. should I be concerned?

There are plenty of short leases in Smithfield. The lease is a legal document that entitles you to use the property for a period of time. As a lease gets shorter the saleability of the lease reduces and results in it becoming more costly to acquire a lease extension. For this reason it is generally wise to extend the lease term. It is often difficult to sell a property with a short lease as mortgage companies less inclined to grant a loan on such properties. Lease enfranchisement can be a protracted process. We recommend you get professional help from a solicitor and surveyor with experience in this arena

What are your top tips when it comes to appointing a Smithfield conveyancing firm to carry out our lease extension conveyancing?

When appointing a property lawyer for lease extension works (regardless if they are a Smithfield conveyancing practice) it is imperative that he or she should be familiar with the legislation and specialises in this area of conveyancing. We advise that you speak with two or three firms including non Smithfield conveyancing practices prior to instructing a firm. Where the conveyancing practice is ALEP accredited then so much the better. Some following of questions could be useful:

• How many lease extensions have they completed in Smithfield in the last year?
• Can they put you in touch with client in Smithfield who can give a testimonial?

Can you provide any top tips for leasehold conveyancing in Smithfield with the purpose of saving time on the sale process?

• Much of the frustration in leasehold conveyancing in Smithfield can be bypassed if you get in touch lawyers the minute you market your property and ask them to collate the leasehold information which will be required by the buyers solicitors.
• Many landlords or managing agents in Smithfield charge for providing management packs for a leasehold premises. You or your lawyers should find out the actual amount of the charges. The management information sought on or before finding a buyer, thus accelerating the process. The typical amount of time it takes to receive management information is three weeks. It is the most frequent reason for frustration in leasehold conveyancing in Smithfield.
• If you have carried out any alterations to the premises would they have required Landlord’s approval? In particular have you installed wooden flooring? Most leases in Smithfield state that internal structural alterations or installing wooden flooring necessitate a licence issued by the Landlord acquiescing to such alterations. If you fail to have the approvals in place do not communicate with the landlord without contacting your solicitor before hand.
• A minority of Smithfield 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 put in hand bank and professional references. The bank reference should make it clear that the buyer is 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 actual amount of the service charge so that they can pass this information on to the buyers or their lawyers.
• You believe that you know the number of years remaining on your lease but it would be wise to double-check via your lawyers. A buyer’s lawyer will be unlikely to recommend their client to proceed with the purchase of a leasehold property the remaining number of years is below 80 years. In the circumstances it is important at an early stage that you consider whether the lease for your property needs extending. If it does, contact your solicitors before you put your home on the market for sale.

I own a basement flat in Smithfield, conveyancing formalities finalised 1999. Can you let me have an estimated range of the fair premium for a lease extension? Corresponding properties in Smithfield with over 90 years remaining are worth £243,000. The ground rent is £65 levied per year. The lease ceases on 21st October 2082

With only 56 years unexpired the likely cost is going to range between £32,300 and £37,400 as well as costs.

The suggested premium range above a general guide to costs for renewing a lease, but we cannot give you a more accurate figure in the absence of detailed investigations. Do not use the figures in tribunal or court proceedings. There are no doubt other issues that need to be considered and clearly you should be as accurate as possible in your negotiations. Neither should you take any other action placing reliance on this information without first seeking the advice of a professional.