Thornbury leasehold conveyancing: Q and A’s
I have just started marketing my basement flat in Thornbury.Conveyancing lawyers have not yet been instructed but I have just received a quarterly service charge invoice – what should I do?
It best that you discharge 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. This will smooth the conveyancing process.
I am hoping to put an offer on a small detached house that seems to tick a lot of boxes, at a reasonable figure which is making it all the more appealing. I have just been informed that it's a leasehold rather than freehold. I would have thought that there are particular concerns purchasing a house with a leasehold title in Thornbury. Conveyancing solicitors have are soon to be appointed. Will my lawyers set out the implications of buying a leasehold house in Thornbury ?
Most houses in Thornbury are freehold rather than leasehold. This is one of the situations where having a local conveyancer used to dealing with such properties who can assist with the conveyancing process. It is clear that you are purchasing in Thornbury in which case you should be shopping around for a Thornbury conveyancing solicitor and be sure that they are used to advising on leasehold houses. First you will need to check the unexpired lease term. As a lessee you will not be entirely free to do whatever you want to the property. 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 upkeep of the communal areas where the property is part of an estate. Your conveyancer will appraise you on the various issues.
My wife and I purchased a leasehold house in Thornbury. Conveyancing and Nationwide Building Society mortgage went though with no issue. I have received a letter from someone claiming to own the freehold. Attached was a ground rent demand for rent dating back to 1991. The conveyancing practitioner in Thornbury who previously acted has long since retired.Do I pay?
First contact HMLR to be sure that this person is in fact the registered owner of the freehold reversion. You do not need to instruct a Thornbury conveyancing practitioner to do this as it can be done on-line for a few pound. Rest assured that regardless, even if this is the rightful freeholder, under the Limitation Act 1980 the limitation period for recovery of ground rent is six years.
I've recently bought a leasehold house in Thornbury. Do I have any liability for service charges for periods before completion of my purchase?
In a situation where the service charge has already been demanded from the previous lessee 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).
Completion in due on the disposal of our £375000 apartment in Thornbury next Monday . The management company has quoted £312 for Certificate of Compliance, building insurance schedule and 3 years service charge statements. Is the landlord entitled to charge exorbitant fees for a leasehold conveyance in Thornbury?
For most leasehold sales in Thornbury conveyancing will involve, questions about the management of a building inevitably needing to be answered directly by the freeholder or its agent, this includes :
- Addressing conveyancing due diligence enquiries
- Where consent is required before sale in Thornbury
- Copies of the building insurance and schedule
- Deeds of covenant upon sale
- Registering of the assignment of the change of lessee after a sale
Thornbury Leasehold Conveyancing - Examples of Queries before buying
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How many of the leaseholders are in arrears for their service charge payments?
Most Thornbury leasehold flats will incur a service charge for maintenance of the block levied by the freeholder. Should you buy the flat you will have to pay this liability, usually quarterly during the year. This may be anything from a couple of hundred pounds to thousands of pounds for blocks with lifts and large communal grounds. In all likelihood there will be a ground rent to be met annual, ordinarily this is not a large sum, say about £25-£75 but you should to enquire as occasionally it could be surprisingly expensive.
Please note that where the lease has fewer than eighty years it will impact the salability of the property. It is worth checking with your bank that they are willing to go ahead with the loan 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 what this will be. Remember, in most cases you will need to own the property for two years before you are eligible to extend the lease.
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