I have just started marketing my ground floor apartment in Smithfield.Conveyancing is yet to be initiated but I have just had a quarterly service charge demand – should I leave it to the buyer to sort out?

Your conveyancing lawyer is likely to suggest that you should discharge 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 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.

Back In 2001, I bought a leasehold flat in Smithfield. Conveyancing and Santander mortgage are in place. I have received a letter from someone claiming to own the freehold. It included a ground rent demand for rent dating back to 1993. The conveyancing solicitor in Smithfield who previously acted has now retired.Do I pay?

First contact HMLR to make sure that this person is in fact the registered owner of the freehold reversion. You do not need to instruct a Smithfield conveyancing solicitor to do this as it can be done on-line for £3. You should note that regardless, even if this is the rightful freeholder, under the Limitation Act 1980 the limitation period for recovery of ground rent is six years.

I've recently bought a leasehold property in Smithfield. Do I have any liability for service charges relating to a period prior to completion of my purchase?

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. However, your landlord may still be able to take action to forfeit the lease. It is an essential part 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).

Do you have any advice for leasehold conveyancing in Smithfield with the intention of saving time on the sale process?

• A significant proportion of the delay in leasehold conveyancing in Smithfield can be avoided where you appoint lawyers the minute you market your property and ask them to collate the leasehold information which will be required by the purchasers’ representatives.
• Many freeholders or managing agents in Smithfield charge for providing management packs for a leasehold premises. You or your lawyers should enquire as to the fee that they propose to charge. The management information can be applied for 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 usual cause of delay in leasehold conveyancing in Smithfield.

If you have carried out any alterations to the premises would they have required Landlord’s permission? Have you, for example installed wooden flooring? Most leases in Smithfield state that internal structural alterations or installing wooden flooring require a licence from the Landlord consenting to such changes. Where you dont have the consents to hand you should not contact the landlord without contacting your conveyancer in the first instance.

If there is a history of conflict with your freeholder or managing agents it is essential that these are resolved before the property is put on the market. The buyers and their solicitors will be concerned about purchasing a flat where there is an ongoing dispute. You may need to swallow your pride and discharge any arrears of service charge or settle the dispute prior to the buyers completing the purchase. It is therefore preferable to have any dispute settled prior to 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 present the dispute as historic as opposed to unresolved.

If you are supposed to have a share in the freehold, you should ensure that you are holding the original share certificate. Arranging a re-issued share certificate is often a lengthy process and slows down many a Smithfield conveyancing transaction. If a reissued share is needed, do contact the company officers or managing agents (if applicable) for this as soon as possible.

Completion in due on the disposal of our £375000 garden flat in Smithfield next Tuesday . The management company has quoted £372 for Landlord’s certificate, building insurance schedule and 3 years statements of service charge. Is it legal for a freeholder to charge such fees for a flat conveyance in Smithfield?

For the majority of leasehold sales in Smithfield conveyancing will involve, questions about the management of a building inevitably needing to be answered directly by the freeholder or its agent, this includes :

• Completing pre-contract enquiries
• Where consent is required before sale in Smithfield
• Copies of the building insurance and schedule
• Deeds of covenant upon sale
• Registering of the assignment of the change of lessee after a sale

Your conveyancer will have no control over the level of the charges for this information but the average costs for the information for Smithfield leasehold premises is £350. For Smithfield conveyancing transactions it is customary for the seller to pay for these costs. The landlord or their agents are under no legal obligation to answer such questions most will be willing to do so - albeit often at exorbitant prices where the fees bear little relation to the work involved. Unfortunately there is no law that requires fixed charges for administrative tasks. Neither is there any legal time frame by which they are obliged to supply answers.

Smithfield Leasehold Conveyancing - A selection of Questions you should ask Prior to Purchasing

Best to be warned whether a new roof is being installed or some other major work is due in the foreseeable future that will be shared amongst the leasehold owners and could well materially impact the level of the maintenance fees or require a specific payment. How is the lease structured? What restrictions are contained in the Smithfield Lease?

Other Topics

Lease Extensions in Smithfield