I’m about to sell my garden flat in Spilsby.Conveyancing is yet to be initiated but I have just received a half-yearly service charge demand – should I leave it to the buyer to sort out?

It best that you 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 management companies 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.

I today plan to offer on a house that appears to meet my requirements, at a reasonable price which is making it all the more appealing. I have since found out that the title is leasehold as opposed to freehold. I am assuming that there are issues buying a house with a leasehold title in Spilsby. Conveyancing lawyers have not yet been appointed. Will my lawyers set out the implications of buying a leasehold house in Spilsby ?

The majority of houses in Spilsby are freehold rather than 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 apparent that you are purchasing in Spilsby in which case you should be shopping around for a Spilsby conveyancing solicitor and check that they are used to dealing with leasehold houses. As a matter of priority you will need to check the unexpired lease term. As a tenant you will not be entirely free to do whatever you want with the house. The lease will likely included provisions for example requiring the landlord’spermission to conduct changes to the property. It may be necessary to pay a service charge towards the maintenance of the communal areas where the property is part of an estate. Your lawyer will appraise you on the various issues.

I've recently bought a leasehold flat in Spilsby. Do I have any liability for service charges for periods before 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. However, your landlord may still be able to take action to forfeit the lease. A critical element of leasehold conveyancing for your conveyancer to be sure 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 am employed by a reputable estate agent office in Spilsby where we have experienced a number of flat sales put at risk due to leases having less than 80 years remaining. I have been given inconsistent advice from local Spilsby conveyancing firms. Could you shed some light as to whether the owner of a flat can start the lease extension process for the buyer?

Provided that 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. The benefit of this is that the proposed purchaser 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 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 buyer.

Do you have any advice for leasehold conveyancing in Spilsby from the point of view of saving time on the sale process?

• A significant proportion of the delay in leasehold conveyancing in Spilsby can be reduced where you get in touch lawyers as soon as you market your property and request that they start to collate the leasehold documentation needed by the buyers representatives.
• If you have carried out any alterations to the premises would they have required Landlord’s approval? In particular have you laid down wooden flooring? Spilsby leases often stipulate that internal structural changes or installing wooden flooring necessitate a licence issued by the Landlord acquiescing to such changes. If you dont have the consents to hand do not contact the landlord without contacting your solicitor before hand.

Spilsby Conveyancing for Leasehold Flats - Examples of Queries Prior to Purchasing

The answer will be useful as a) areas may result in problems in the building as the communal areas may begin to deteriorate where services are not paid for b) if the leaseholders have a dispute with the running of the building you will need to have all the details Its a good idea to discover as much as possible regarding the company managing the block as they can either make your life much easier or uncomfortable. Being a leasehold owner you will be in the clutches of the managing agents both financially and when it comes to practical issues like the upkeep of the common parts. You should not be afraid to ask other tenants what they think of their service. On a final note, be sure you know the dates that the maintenance fees are due to the managing agents and precisely what you get for your money. You should be aware that where the lease has less than eighty years it will affect the marketability of the apartment. Check with your lender that they are willing to to proceed given the lease term. A short lease means that you will most likely require a lease extension sooner rather than later and it is worth finding out how much this will be. For most Spilsbylease extensions you would be required to have been the owner of the residence for two years before you are entitled to extend the lease.

Other Topics

Lease Extensions in Spilsby