Expecting to sign contracts shortly on a leasehold property in Tonteg. Conveyancing lawyers assured me that they report fully within the next couple of days. What should I be looking out for?

The report on title for your leasehold conveyancing in Tonteg should include some of the following:

• The unexpired lease term You should be advised as what happens when the lease expires, and aware of the importance of the 80 year mark

I am looking at a couple of flats in Tonteg which have approximately fifty years left on the lease term. should I be concerned?

There is no doubt about it. A leasehold apartment in Tonteg is a wasting asset as a result of the reducing lease term. The closer the lease gets to zero years unexpired, the more it reduces the salability of the property. The majority of purchasers and banks, 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 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 Tonteg conveyancing experts who will explain the options available to you during an initial telephone conversation free of charge. A more straightforward and quicker method of extending would be to contact your landlord directly and sound him out on the prospect of extending 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.

Last month I purchased a leasehold house in Tonteg. Am I liable to pay service charges for periods before my ownership?

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. Strange as it may seem, your landlord may still be able to take action to forfeit the lease. It is an essential part 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).

Do you have any advice for leasehold conveyancing in Tonteg with the intention of expediting the sale process?

• Much of the delay in leasehold conveyancing in Tonteg can be bypassed if you get in touch lawyers the minute your agents start marketing the property and ask them to collate the leasehold information which will be required by the buyers lawyers.
• If you have carried out any alterations to the premises would they have required Landlord’s consent? Have you, for example installed wooden flooring? Tonteg leases often stipulate that internal structural changes or laying down wooden flooring require a licence issued by the Landlord consenting to such works. If you fail to have the consents to hand do not communicate with the landlord without contacting your lawyer before hand.

What are the frequently found defects that you encounter in leases for Tonteg properties?

There is nothing unique about leasehold conveyancing in Tonteg. All leases is drafted differently and drafting errors can sometimes mean that certain sections are missing. For example, if your lease is missing any of the following, it could be defective:

• Repairing obligations to or maintain parts of the building
• Insurance obligations
• Clauses dealing with recovering service charges for expenditure on the building or common parts.
• Service charge per centages that don't add up correctly leaving a shortfall

A defective lease can cause issues when trying to sell a property as they can affect a potential buyer’s ability to obtain a mortgage. Lloyds TSB Bank, Chelsea Building Society, and Bank of Ireland all have very detailed conveyancing instructions when it comes to what is expected in a lease. If a mortgage lender believes that the lease is problematic they may refuse to provide security, obliging the purchaser to withdraw.

Tonteg Conveyancing for Leasehold Flats - Sample of Queries before buying

The best form of lease structure is if the freehold reversion is owned by the leaseholders. In this scenario the tenants benefit from control and even though a managing agent is often employed where the building is larger than a house conversion, the managing agent is directed by the tenants. Is there a share of the freehold? It is important to be aware whether redecorating or some other major work is due in the foreseeable future to be shared amongst the leaseholders and could well materially increase the the service costs or necessitate a specific invoice.

Other Topics

Lease Extensions in Tonteg