Common questions relating to St Mawes leasehold conveyancing
I am on look out for some leasehold conveyancing in St Mawes. Before I set the wheels in motion I would like to find out the remaining lease term.
Assuming the lease is recorded at the land registry - and most are in St Mawes - then the leasehold title will always include the basic details of the lease, namely the date; the term; and the original parties. From a conveyancing perspective such details then enable any prospective buyer and lender to confirm that any lease they are looking at is the one relevant to that title.For any other purpose, such as confirming how long the term was granted for and calculating what is left, then the register should be sufficient on it's own.
Expecting to sign contracts shortly on a garden flat in St Mawes. Conveyancing lawyers have said that they will have a report out to me within the next couple of days. What should I be looking out for?
Your report on title for your leasehold conveyancing in St Mawes should include some of the following:
- The physical extent of the demise. This will be the apartment itself but might include a roof space or basement if applicable.
I am looking at a two apartments in St Mawes both have approximately forty five years unexpired on the leases. Do I need to be concerned?
There is no doubt about it. A leasehold flat in St Mawes is a wasting asset as a result of the shortening lease. The nearer the lease gets to zero years unexpired, the more it adversely affects the marketability of the property. The majority of buyers and banks, leases with under 75 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 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 St Mawes 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 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.
I am employed by a busy estate agent office in St Mawes where we have experienced a number of flat sales jeopardised as a result of short leases. I have received inconsistent advice from local St Mawes conveyancing firms. Could you confirm whether the seller of a flat can initiate the lease extension formalities for the purchaser on completion of the sale?
As long as the seller has owned the lease for at least 2 years it is possible, to serve a Section 42 notice to start the lease extension process and assign the benefit of the notice to the purchaser. This means that the buyer can avoid having to wait 2 years to extend their lease. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed prior to, 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.
All being well we will complete our sale of a £125000 maisonette in St Mawes on Monday in a week. The managing agents has quoted £348 for Certificate of Compliance, insurance certificate and previous years statements of service charge. Is it legal for a freeholder to charge such fees for a leasehold conveyance in St Mawes?
St Mawes conveyancing on leasehold apartments usually necessitates the purchaser’s conveyancer submitting questions for the landlord to address. Although the landlord is not legally bound to address such questions the majority will be willing to do so. They are at liberty invoice a reasonable charge for responding to enquiries or supplying documentation. There is no set fee. The average costs for the paperwork that you are referring to is over three hundred pounds, in some transactions it exceeds £800. The management information fee invoiced by the landlord must be sent together with a summary of rights and obligations in respect of administration fees, without which the charge is technically not due. Reality however dictates that one has no choice but to pay whatever is demanded if you want to sell the property.
Leasehold Conveyancing in St Mawes - A selection of Queries Prior to Purchasing
The best form of lease arrangement is a share of the freehold. In this situation the leaseholders have being in charge if their destiny and although a managing agent is usually retained if the building is larger than a house conversion, the managing agent is directed by the tenants.
Best to be warned if a new roof is being put on or some other major work is pending that will be shared by the tenants and will materially impact the level of the maintenance costs or necessitate a one off payment.
Most St Mawes leasehold apartments will have a service charge for the upkeep of the building levied by the landlord. Where you purchase the flat you will have to pay this liability, normally in instalments during the year. This can vary from a few hundred pounds to thousands of pounds for blocks with lifts and large communal areas. In all probability there will be a rentcharge to be met yearly, normally this is not a large figure, say about £50-£100 but you should to check as occasionally it could be many hundreds of pounds.