I've found a house that seems to be perfect, at a great price which is making it more attractive. I have just found out that it's a leasehold as opposed to freehold. I am assuming that there are issues buying a house with a leasehold title in Thatcham. Conveyancing solicitors have are soon to be appointed. Will my lawyers set out the implications of buying a leasehold house in Thatcham ?

Most houses in Thatcham are freehold and not leasehold. In this scenario it’s worth having a local solicitor who is familiar with the area can assist with the conveyancing process. We note that you are buying in Thatcham so you should seriously consider shopping around for a Thatcham conveyancing practitioner and be sure that they are used to advising on leasehold houses. As a matter of priority you will need to check the number of years remaining. Being a lessee you will not be at liberty to do whatever you want to the property. The lease comes with conditions for example obtaining the freeholder’sconsent to carry out changes to the property. It may be necessary to pay a contribution towards the upkeep of the communal areas where the house is located on an estate. Your lawyer will report to you on the legal implications.

Back In 2008, I bought a leasehold flat in Thatcham. Conveyancing and Norwich and Peterborough Building Society mortgage went though with no issue. A letter has just been received from someone claiming to own the freehold. Attached was a ground rent demand for rent dating back to 1998. The conveyancing solicitor in Thatcham who previously acted has long since retired.What should I do?

The first thing you should do is make enquiries of HMLR to make sure that this person is in fact the new freeholder. You do not need to incur the fees of a Thatcham conveyancing solicitor to do this as you can do this on the Land Registry website for a few pound. Rest assured that regardless, even if this is the legitimate landlord, under the Limitation Act 1980 no more than 6 years of rent can be collected.

I am tempted by the attractive purchase price for a couple of flats in Thatcham both have about fifty years left on the lease term. Will this present a problem?

There are plenty of short leases in Thatcham. The lease is a right to use the premises for a period of time. As the lease gets shorter the value of the lease decreases and it becomes more costly to extend the lease. For this reason it is advisable to increase the term of the lease. Sometimes it is difficult to sell a property with a short lease because mortgage companies less inclined to grant a loan on properties of this type. Lease extension can be a protracted process. We recommend you get professional help from a solicitor and surveyor with experience in this area

I work for a busy estate agent office in Thatcham where we have experienced a few leasehold sales derailed due to leases having less than 80 years remaining. I have been given conflicting advice from local Thatcham conveyancing solicitors. Please can you clarify whether the seller of a flat can instigate the lease extension process 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. The benefit of this is that the buyer 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 prior to, or at the same time as completion of the sale.

An alternative approach is to agree the lease extension with the freeholder 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.

What advice can you give us when it comes to appointing a Thatcham conveyancing practice to carry out our lease extension conveyancing?

If you are instructing a property lawyer for your lease extension (regardless if they are a Thatcham conveyancing practice) it is most important that he or she should be familiar with the legislation and specialises in this area of work. We suggested that you make enquires with two or three firms including non Thatcham conveyancing practices before you instructing a firm. If the firm is ALEP accredited then so much the better. Some following of questions could be of use:

• How familiar is the practice with lease extension legislation?

Thatcham Leasehold Conveyancing - Sample of Queries before buying

Where a Thatcham lease has less than eighty years it will impact the salability of the property. Check with your lender that they are willing to lend given the lease term. A short lease means that you will most likely need a lease extension at some point and you need to have some idea of what this would cost. For most Thatchamlease extensions you will be required to have been the owner of the residence for 24 months in order to be legally able to exercise a lease extension. In the main the cost for major works are not included within service charges, although some managing agents in Thatcham obliged tenants to pay into a sinking fund and this is used to offset against major repairs or maintenance. Its a good idea to discover as much as you can about the managing agents as they can either make life much easier or much more difficult. Being a leasehold owner you are frequently in the clutches of the managing agents from a financial perspective and when it comes to every day issues like the cleanliness of the communal areas. Enquire of prospective neighbours what they think of them. Finally, find out the dates that the maintenance fees are due to the appropriate party and specifically how they are spending that money.

Other Topics

Lease Extensions in Thatcham