St Leonards On Sea leasehold conveyancing: Q and A’s
Expecting to exchange soon on a leasehold property in St Leonards On Sea. Conveyancing solicitors inform me that they report fully tomorrow. What should I be looking out for?
The report on title for your leasehold conveyancing in St Leonards On Sea should include some of the following:
- You should receive a copy of the lease
Estate agents have just been given the go-ahead to market my ground floor apartment in St Leonards On Sea.Conveyancing solicitors are to be appointed soon but I have just received a yearly service charge invoice – what should I do?
The sensible thing to do is pay the service charge 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 tempted by the attractive purchase price for a two apartments in St Leonards On Sea both have approximately forty five years unexpired on the lease term. Will this present a problem?
There are no two ways about it. A leasehold flat in St Leonards On Sea is a deteriorating asset as a result of the shortening lease. The closer the lease gets to its expiry date, the more it adversely affects the value of the property. For most buyers and mortgage companies, leases with under eighty years become less and less attractive. 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 property 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 a residence 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 St Leonards 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 You may find he or she is happy to negotiate informally and willing to consider your offer straight off, without having to involve anyone else. This will save you time and money and it could help you reach a lower price on the lease. You need to ensure that the agreed 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.
Do you have any advice for leasehold conveyancing in St Leonards On Sea with the purpose of saving time on the sale process?
- Much of the frustration in leasehold conveyancing in St Leonards On Sea can be bypassed where you get in touch lawyers as soon as your agents start advertising the property and ask them to put together the leasehold information which will be required by the purchasers’ conveyancers.
- In the event that you altered the property did you need the Landlord’s approval? In particular have you laid down wooden flooring? St Leonards On Sea leases often stipulate that internal structural changes or laying down wooden flooring require a licence issued by the Landlord consenting to such works. Where you dont have the consents to hand do not communicate with the landlord without checking with your lawyer in advance.
What are the frequently found problems that you see in leases for St Leonards On Sea properties?
There is nothing unique about leasehold conveyancing in St Leonards On Sea. All leases are individual and drafting errors can sometimes mean that certain provisions are not included. The following missing provisions could result in a defective lease:
- Repairing obligations to or maintain parts of the building
- Insurance obligations
- 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
A defective lease can cause problems when trying to sell a property as they can affect a potential buyer’s ability to obtain a mortgage. National Westminster Bank, Chelsea Building Society, and Platform Home Loans Ltd all have express conveyancing instructions 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 purchaser to withdraw.
Leasehold Conveyancing in St Leonards On Sea - Sample of Questions you should ask before buying
Who takes responsibility for maintaining and repairing the building?
Are any of leasehold owners in dispute over their service charge liability?
What is the yearly maintenance fee and ground rent?