Recently asked questions relating to Urmston leasehold conveyancing
Estate agents have just been given the go-ahead to market my ground floor apartment in Urmston.Conveyancing lawyers have not yet been instructed but I have just received a half-yearly service charge invoice – should I leave it to the buyer to sort out?
The sensible thing to do is 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 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 tempted by the attractive purchase price for a two maisonettes in Urmston which have about 50 years left on the leases. Do I need to be concerned?
There is no doubt about it. A leasehold flat in Urmston is a wasting asset as a result of the reducing lease term. The nearer the lease gets to zero years unexpired, the more it reduces the salability of the premises. For most purchasers and lenders, leases with under 75 years become less and less marketable. On a more positive 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 a residence 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 Urmston conveyancing experts who will explain the options available to you during an initial telephone conversation free of charge. More often than not it is possible to negotiate informally with the freeholder to extend 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 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.
What advice can you give us when it comes to finding a Urmston conveyancing practice to carry out our lease extension conveyancing?
If you are instructing a conveyancer for your lease extension (regardless if they are a Urmston conveyancing practice) it is imperative that they be familiar with the legislation and specialises in this area of work. We recommend that you talk with several firms including non Urmston conveyancing practices before you instructing a firm. Where the conveyancing practice is ALEP accredited then so much the better. Some following of questions might be helpful:
- Can they put you in touch with client in Urmston who can give a testimonial?
All being well we will complete the disposal of our £125000 flat in Urmston in just under a week. The managing agents has quoted £420 for Certificate of Compliance, building insurance schedule and previous years statements of service charge. Is the landlord entitled to charge such fees for a leasehold conveyance in Urmston?
Urmston conveyancing on leasehold flats normally results in administration charges invoiced by management companies :
- Answering pre-contract enquiries
- Where consent is required before sale in Urmston
- Supplying insurance information
- Deeds of covenant upon sale
- Registering of the assignment of the change of lessee after a sale
What makes a Urmston lease defective?
There is nothing unique about leasehold conveyancing in Urmston. Most leases are individual and drafting errors can result in certain provisions are wrong. For example, if your lease is missing any of the following, it could be defective:
- Repairing obligations to or maintain elements of the premises
- Insurance obligations
- A provision for the recovery of money spent for the benefit of another party.
- Maintenance charge proportions which don’t add up to the correct percentage
You may have difficulties when selling your property if you have a defective lease as they can affect a potential buyer’s ability to obtain a mortgage. Lloyds TSB Bank, The Mortgage Works, and Alliance & Leicester all have express requirements when it comes to what is expected in a lease. Where a lender has been advised by their lawyers that the lease is problematic they may refuse to grant the mortgage, forcing the purchaser to withdraw.
Leasehold Conveyancing in Urmston - Sample of Queries Prior to buying
The majority of Urmston leasehold flats will be liable to pay a service charge for maintenance of the building invoiced by the freeholder. Where you purchase the property you will have to meet this liability, normally quarterly during the year. This may vary from two or three hundred pounds to thousands of pounds for large purpose-built blocks. There will also be a rentcharge to be met annual, this is usually not a significant sum, say around £25-£75 but you need to enquire as on occasion it could be many hundreds of pounds.
In the main the cost for major works are not included within service charges, although a few managing agents in Urmston require tenants to contribute towards a reserve fund and this is used to offset against larger repairs or maintenance.
Where a Urmston lease has no more than 80 years it will have adverse implications on the salability of the property. It is worth checking with your lender that they are happy with residual term of the lease. A short lease means that you will probably require a lease extension sooner rather than later and it is worth finding out how much this will be. Remember, in most cases you will need to own the property for 24 months in order to be eligible to extend the lease.