I have just appointed agents to market my 2 bed apartment in Umberleigh.Conveyancing solicitors are to be appointed soon but I have just had a quarterly service charge invoice – Do I pay up?

Your conveyancing lawyer is likely to suggest that you should 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 management companies will not acknowledge the buyer until 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. Having a clear account will assist your cause and will leave you no worse off financially.

I am tempted by the attractive purchase price for a couple of apartments in Umberleigh both have approximately forty five years unexpired on the leases. Do I need to be concerned?

There are plenty of short leases in Umberleigh. The lease is a legal document that entitles you to use the property for a period of time. As a lease shortens the value of the lease decreases and it becomes more expensive to extend the lease. This is why it is advisable to extend the lease term. It is often difficult to sell a property with a short lease because mortgage companies less inclined to grant a loan on such properties. Lease enfranchisement can be a protracted process. We advise that you seek professional assistance from a conveyancer and surveyor with experience in this arena

Last month I purchased a leasehold house in Umberleigh. Am I liable to pay service charges relating to a period prior to 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. 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 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).

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

• A significant proportion of the frustration in leasehold conveyancing in Umberleigh can be avoided where you instruct lawyers as soon as you market your property and ask them to put together the leasehold documentation needed by the buyers solicitors.
• In the event that you altered the property did you need the Landlord’s permission? Have you, for example laid down wooden flooring? Most leases in Umberleigh state that internal structural alterations or laying down wooden flooring necessitate a licence from the Landlord consenting to such alterations. Where you dont have the paperwork in place do not communicate with the landlord without checking with your solicitor first.
• A minority of Umberleigh leases require Licence to Assign from the landlord. If this is the case, it would be prudent to notify your estate agents to make sure that the purchasers obtain bank and professional references. Any bank reference will need to confirm that the buyers are able to meet 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 actual amount of the service charge so that they can pass this information on to the purchasers or their lawyers.
• If there is a history of any disputes with your landlord or managing agents it is very important that these are resolved prior to the flat being put on the market. The purchasers and their solicitors will be reluctant to purchase a flat where there is an ongoing dispute. You may have to bite the bullet and pay any arrears of service charge or resolve the dispute prior to the buyers completing the purchase. It is therefore preferable to have any dispute settled ahead of the contract papers being issued to the buyers’ solicitors. You will still have to reveal particulars of the dispute to the purchasers, but it is clearly preferable to present the dispute as over rather than ongoing.
• If you have the benefit of shareholding in the Management Company, you should make sure that you are holding the original share document. Arranging a new share certificate can be a lengthy formality and frustrates many a Umberleigh home move. Where a new share certificate is needed, do contact the company officers or managing agents (where applicable) for this as soon as possible.

If all goes to plan we aim to complete the disposal of our £ 125000 flat in Umberleigh next Thursday . The managing agents has quoted £<Macro 'feeRangeWithVAT'> for Landlord’s certificate, building insurance schedule and 3 years statements of service charge. Is the landlord entitled to charge exorbitant fees for a leasehold conveyance in Umberleigh?

Umberleigh conveyancing on leasehold apartments often involves the buyer’s conveyancer submitting questions for the landlord to answer. Although the landlord is under no legal obligation to respond to these enquiries the majority will be content to do so. They are at liberty levy a reasonable charge for answering questions or supplying documentation. There is no set fee. The average fee for the paperwork that you are referring to is over three hundred pounds, in some transactions it is above £800. The administration charge levied by the landlord must be sent together with a summary of rights and obligations in relation to administration fees, otherwise the charge is technically not due. In reality one has little choice but to pay whatever is demanded should you wish to complete the sale of your home.

Umberleigh Leasehold Conveyancing - A selection of Queries before Purchasing

Generally speaking the cost for major works are not included within maintenance charges, although a few managing agents in Umberleigh ask leaseholders to contribute towards a reserve fund created for the specific intention of building a fund for major works. Best to be warned whether fixing the lift or some other significant cost is coming up that will be shared between the leasehold owners and will materially impact the level of the maintenance costs or result in a one off payment.