Recently asked questions relating to Trefnant leasehold conveyancing
I've found a house that appears to meet my requirements, at a great figure which is making it more attractive. I have since been informed that the title is leasehold as opposed to freehold. I would have thought that there are issues purchasing a house with a leasehold title in Trefnant. Conveyancing lawyers have are about to be instructed. Will my lawyers set out the implications of buying a leasehold house in Trefnant ?
The majority of houses in Trefnant are freehold and not leasehold. This is one of the situations where having a local solicitor who is familiar with the area can help the conveyancing process. It is clear that you are purchasing in Trefnant in which case you should be looking for a Trefnant conveyancing solicitor 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. As a leaseholder you will not be at liberty to do whatever you want with the house. The lease will likely included provisions for example obtaining the freeholder’sconsent to carry out changes to the property. You may also be required to pay a service charge towards the upkeep of the communal areas where the house is part of an estate. Your lawyer should advise you fully on all the issues.
I am looking at a two apartments in Trefnant which have in the region of forty five years unexpired on the leases. should I be concerned?
There are no two ways about it. A leasehold apartment in Trefnant is a wasting asset as a result of the shortening lease. The closer the lease gets to its expiry date, the more it reduces the marketability of the premises. The majority of purchasers and mortgage companies, leases with less than eighty years become less and less marketable. 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 property 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 Trefnant 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 You may find he or she is happy to negotiate informally and willing to consider your offer straight off, without having to involve anyone else. This will save you time and money and it could help you reach a lower price on the lease. You need to ensure that any new 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've recently bought a leasehold property in Trefnant. Am I liable to pay service charges for periods before my ownership?
Where the service charge has already been demanded from the previous owner 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. It is an essential part of leasehold conveyancing for your conveyancer to ensure 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).
Can you offer any advice when it comes to appointing a Trefnant conveyancing practice to deal with our lease extension?
When appointing a conveyancer for your lease extension (regardless if they are a Trefnant conveyancing firm) it is imperative that he or she should be familiar with the legislation and specialises in this area of work. We recommend that you talk with several firms including non Trefnant conveyancing practices prior to instructing a firm. If the firm is ALEP accredited then that’s a bonus. Some following of questions might be helpful:
- How experienced is the firm with lease extension legislation?
If all goes to plan we aim to complete our sale of a £375000 garden flat in Trefnant next Friday . The management company has quoted £336 for Certificate of Compliance, insurance certificate and 3 years statements of service charge. Is it legal for a freeholder to charge such fees for a leasehold conveyance in Trefnant?
Trefnant conveyancing on leasehold apartments often necessitates the buyer’s lawyer submitting enquiries for the landlord to address. Although the landlord is under no legal obligation to answer these enquiries the majority will be content to do so. They are entitled invoice a reasonable charge for answering enquiries or supplying documentation. There is no set fee. The average costs for the information that you are referring to is £350, in some cases it is in excess of £800. The management information fee invoiced by the landlord must be sent together with a summary of rights and obligations in respect of administration charges, without which the charge is technically not due. In reality you have no choice but to pay whatever is demanded if you want to sell the property.
Trefnant Leasehold Conveyancing - A selection of Queries Prior to Purchasing
You should want to find out as much as you can concerning the company managing the building as they will impact your use and enjoyment of the property. As the proprietor of a leasehold property you will be in the clutches of the managing agents from a financial perspective and when it comes to practical issues like the cleanliness of the communal areas. Enquire of other tenants what they think of them. Finally, find out the dates that the maintenance fees are due to the relevant party and precisely what it includes.
For many Trefnant leaseholds the outlay for major works tend not to be included within maintenance charges, although a few managing agents in Trefnant require leaseholders to pay into a reserve fund and this is used to offset against larger works.
The best form of lease arrangement is where the freehold reversion is in the ownership of the leaseholders. In this scenario the lessees enjoy control and although a managing agent is frequently retained if the building is bigger than a house conversion, the managing agent retained by the leaseholders.