I've found a house that seems to tick a lot of boxes, at a reasonable price which is making it all the more appealing. I have subsequently found out that the title is leasehold rather than freehold. I am assuming that there are issues purchasing a leasehold house in Totterdown. Conveyancing advisers have are soon to be appointed. Will they explain the issues?

Most houses in Totterdown are freehold rather than leasehold. In this scenario it’s worth having a local conveyancer who is familiar with the area can assist with the conveyancing process. We note that you are purchasing in Totterdown in which case you should be shopping around for a Totterdown conveyancing solicitor and check that they are used to transacting on leasehold houses. First you will need to check the unexpired lease term. Being a lessee you will not be entirely free to do whatever you want to the property. The lease comes with conditions for example obtaining the landlord’sconsent to carry out changes to the property. You may also be required to pay a contribution towards the upkeep of the communal areas where the house is located on an estate. Your conveyancer will report to you on the legal implications.

I am attracted to a two apartments in Totterdown which have approximately forty five years unexpired on the lease term. Do I need to be concerned?

A lease is a right to use the property for a period of time. As the lease shortens the saleability of the lease decreases and results in it becoming more costly to acquire a lease extension. This is why it is often a good idea to increase the term of the lease. More often than not it is difficulties arise selling premises with a short lease as mortgage companies may be unwilling to lend money on such properties. Lease enfranchisement can be a protracted process. We advise that you seek professional help from a solicitor and surveyor with experience in this field

I work for a long established estate agency in Totterdown where we see a number of flat sales jeopardised as a result of short leases. I have received conflicting advice from local Totterdown conveyancing firms. Could you shed some light as to whether the owner of a flat can start the lease extension formalities for the buyer?

As long as the seller has been the owner 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 proposed purchaser can avoid having to wait 2 years for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment has to be done prior to, or at the same time as completion of the sale.

Alternatively, it may be possible 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.

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

• Much of the delay in leasehold conveyancing in Totterdown can be reduced if you get in touch lawyers as soon as you market your property and request that they start to collate the leasehold documentation needed by the purchasers’ solicitors.
• Some Totterdown leases require Landlord’s consent to the sale and approval of the buyers. If this is the case, you should notify your estate agents to make sure that the purchasers put in hand financial (bank) and professional references. The bank reference should make it clear that the buyer is financially capable of paying the annual service charge and the actual amount of the service charge should be quoted in the bank’s letter. You will therefore need to provide your estate agents with the service charge figures so that they can pass this information on to the purchasers or their lawyers.

If you have had conflict with your landlord or managing agents it is very important that these are resolved prior to the flat being marketed. The buyers and their solicitors will be reluctant to purchase a property where a dispute is ongoing. You will have to accept that you will have to discharge any arrears of service charge or settle the dispute prior to completion of the sale. It is therefore preferable to have any dispute settled prior to the contract papers being issued to the buyers’ solicitors. You will still have to reveal particulars of the dispute to the buyers, but it is better to present the dispute as historic rather than ongoing.

If you are supposed to have a share in the Management Company, you should ensure that you hold the original share certificate. Obtaining a new share certificate can be a time consuming process and slows down many a Totterdown conveyancing transaction. If a duplicate share certificate is needed, you should approach the company officers or managing agents (where relevant) for this sooner rather than later.

You may think that you are aware of the number of years left on your lease but it would be advisable double-check via your lawyers. A purchaser's lawyer will be unlikely to recommend their client to to exchange contracts if the lease term is below 75 years. In the circumstances it is important at an as soon as possible that you identify whether the lease for your property needs extending. If it does, contact your solicitors before you put your home on the market for sale.

We expect to complete the disposal of our £325000 flat in Totterdown on Monday in a week. The management company has quoted £336 for Landlord’s certificate, insurance certificate and 3 years statements of service charge. Is the landlord entitled to charge an administration fee for a leasehold conveyance in Totterdown?

For the majority of leasehold sales in Totterdown conveyancing will involve, queries regarding the management of a building inevitably needing to be answered directly by the freeholder or its agent, this includes :

• Answering conveyancing due diligence enquiries
• Where consent is required before sale in Totterdown
• Copies of the building insurance and schedule
• Deeds of covenant upon sale
• Registering of the assignment of the change of lessee after a sale

Your conveyancer will have no control over the level of the charges for this information but the average costs for the information for Totterdown leasehold premises is £350. For Totterdown conveyancing transactions it is customary for the seller to pay for these costs. The landlord or their agents are under no legal obligation to answer such questions most will be willing to do so - albeit often at exorbitant prices where the fees bear little relation to the work involved. Unfortunately there is no law that requires fixed charges for administrative tasks. Neither is there any legal time frame by which they are obliged to provide answers.

Totterdown Leasehold Conveyancing - A selection of Queries Prior to Purchasing

Many Totterdown leasehold apartments will have a service bill for the upkeep of the block levied by the freeholder. If you purchase the flat you will have to pay this amount, usually quarterly accross the year. This may differ from a couple of hundred pounds to thousands of pounds for large purpose-built blocks. There will also be a rentcharge for you to pay yearly, this is usually not a exorbitant sum, say around £50-£100 but you need to check it because on occasion it can be prohibitively expensive. Be sure to enquire if the the lease includes any onerous restrictions in the lease. For instance plenty of leases prohibit pets being permitted in certain buildings in Totterdown. If you like the apartmentin Totterdown however your cat is not allowed to move with you then you will be faced difficult choice. Does the lease include onerous restrictions?

Other Topics

Lease Extensions in Totterdown