Planning to sign contracts shortly on a leasehold property in Southend On Sea. Conveyancing lawyers 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 Southend On Sea should include some of the following:

• Details of the parties to the lease, for example these could be the leaseholder (you), head lessor, landlord
• The total extent of the premises. This will be the flat itself but could also incorporate a roof space or cellar if applicable.
• Does the lease prevent you from letting out the flat, or having a home office for business
• Ground rent - how much and when you need to pay, and also know whether this is subject to change
• An explanation as to the provision in the lease to pay service charges - with regard to both the building, and the more general rights a leaseholder has
• You should have a good understanding of the insurance provisions
• What the implications are if you breach a clause of your lease?

I today plan to offer on a house that seems to meet my requirements, at a reasonable figure which is making it all the more appealing. I have subsequently found out that the title is leasehold rather than freehold. I would have thought that there are issues purchasing a leasehold house in Southend On Sea. Conveyancing solicitors have not yet been appointed. Will they explain the issues?

The majority of houses in Southend On Sea are freehold and not leasehold. In this scenario it’s worth having a local conveyancer used to dealing with such properties who can assist with the conveyancing process. We note that you are purchasing in Southend On Sea so you should seriously consider shopping around for a Southend On Sea conveyancing solicitor and check that they are used to dealing with leasehold houses. As a matter of priority you will need to check the number of years remaining. As a tenant you will not be at liberty to do whatever you want to the property. The lease will likely included provisions such as requiring the landlord’sconsent to conduct alterations. You may also be required to pay a maintenance charge towards the upkeep of the estate where the house is part of an estate. Your lawyer should appraise you on the various issues.

I am looking at a two apartments in Southend On Sea which have about forty five years remaining on the lease term. Will this present a problem?

There is no doubt about it. A leasehold apartment in Southend On Sea is a wasting asset as a result of the shortening lease. The closer the lease gets to zero years unexpired, the more it adversely affects the value of the premises. For most buyers and mortgage companies, leases with less than eighty years become less and less marketable. On a more upbeat 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 Southend On Sea 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 any new 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.

I work for a long established estate agent office in Southend On Sea where we see a number of leasehold sales derailed as a result of short leases. I have been given inconsistent advice from local Southend On Sea conveyancing firms. Can you clarify whether the seller of a flat can commence the lease extension formalities 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 kick-start the lease extension process and assign the benefit of the notice to the purchaser. The benefit of this is 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 needs to be completed prior to, or simultaneously with completion of the sale.

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 purchaser.

Do you have any advice for leasehold conveyancing in Southend On Sea with the purpose of expediting the sale process?

• Much of the delay in leasehold conveyancing in Southend On Sea can be avoided where you get in touch lawyers the minute you market your property and ask them to collate the leasehold documentation which will be required by the buyers solicitors.
• The majority freeholders or Management Companies in Southend On Sea charge for supplying management packs for a leasehold property. You or your lawyers should discover the actual amount of the charges. The management information can be applied for as soon as you have a buyer, thus accelerating the process. The typical amount of time it takes to receive management information is three weeks. It is the most common reason for frustration in leasehold conveyancing in Southend On Sea.
• A minority of Southend On Sea leases require Licence to Assign from the landlord. If this applies to your lease, you should place the estate agents on notice to make sure that the purchasers put in hand bank and professional references. Any 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 purchasers or their lawyers.
• If you hold a share in a the Management Company, you should make sure that you are holding the original share certificate. Arranging a new share certificate is often a time consuming formality and frustrates many a Southend On Sea conveyancing deal. If a reissued share is necessary, you should approach the company officers or managing agents (if relevant) for this as soon as possible.
• You believe that you know the number of years remaining on your lease but it would be wise to verify this via your solicitors. A buyer’s conveyancer will not be happy to advise their client to where the lease term is below 75 years. It is therefore important at an early stage that you identify whether the lease term for your property needs extending. If it does, contact your solicitors before you put your property on the market for sale.

Leasehold Conveyancing in Southend On Sea - A selection of Queries Prior to Purchasing

Does the lease contain onerous restrictions?