I am attracted to a couple of maisonettes in Victoria Docks both have approximately 50 years left on the lease term. Should I regard a short lease as a deal breaker?

There are no two ways about it. A leasehold flat in Victoria Docks is a wasting asset as a result of the reducing lease term. The closer the lease gets to zero years unexpired, the more it adversely affects the marketability of the property. The majority of purchasers and lenders, leases with less than 75 years become less and less attractive. 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 property 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 Victoria Docks 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 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 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 flat in Victoria Docks. Do I have any liability for 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).

What advice can you give us when it comes to choosing a Victoria Docks conveyancing practice to carry out our lease extension conveyancing?

When appointing a solicitor for your lease extension (regardless if they are a Victoria Docks conveyancing practice) it is imperative that they be familiar with the legislation and specialises in this area of conveyancing. We recommend that you speak with several firms including non Victoria Docks conveyancing practices before you instructing a firm. If the firm is ALEP accredited then so much the better. Some following of questions could be of use:

• How familiar is the firm with lease extension legislation?
• Can they put you in touch with client in Victoria Docks who can give a testimonial?

Can you provide any advice for leasehold conveyancing in Victoria Docks from the point of view of expediting the sale process?

• A significant proportion of the delay in leasehold conveyancing in Victoria Docks can be reduced where you appoint lawyers the minute your agents start advertising the property and ask them to collate the leasehold documentation needed by the buyers lawyers.
• In the event that you altered the property did you need the Landlord’s approval? In particular have you laid down wooden flooring? Victoria Docks leases often stipulate that internal structural alterations or addition of wooden flooring calls for a licence from the Landlord approving such works. Where you dont have the consents to hand you should not contact the landlord without checking with your conveyancer in the first instance.
• A minority of Victoria Docks leases require Licence to Assign from the landlord. If this applies to your lease, it would be prudent to place the estate agents on notice to make sure that the purchasers put in hand financial (bank) and professional references. Any bank reference will need to confirm that the buyers are able to meet the yearly 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 you have the benefit of shareholding in the Management Company, you should make sure that you have the original share certificate. Arranging a re-issued share certificate can be a lengthy formality and slows down many a Victoria Docks conveyancing deal. Where a reissued share certificate is required, you should approach the company officers or managing agents (if 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 wise to verify this via your conveyancers. A purchaser's lawyer will be unlikely to recommend their client to proceed with the purchase of a leasehold property the lease term is below 80 years. In the circumstances it is essential at an early stage that you consider whether the lease term for your property needs extending. If it does, contact your solicitors before you put your property on the market for sale.

Completion in due on the disposal of our £ 175000 garden flat in Victoria Docks on Friday in a week. The freeholder has quoted £<Macro 'feeRangeWithVAT'> for Certificate of Compliance, building insurance schedule and previous years statements of service charge. Is the landlord entitled to charge exorbitant fees for a leasehold conveyance in Victoria Docks?

Victoria Docks conveyancing on leasehold apartments normally requires the purchaser’s lawyer sending enquiries for the landlord to address. Although the landlord is not legally bound to answer these enquiries most will be content to assist. They are at liberty invoice a reasonable charge for answering questions or supplying documentation. There is no set fee. The average costs for the information that you are referring to is £350, in some transactions it exceeds £800. The administration charge levied by the landlord must be accompanied by a summary of rights and obligations in relation to administration fees, otherwise the charge is not strictly payable. Reality however dictates that one has no choice but to pay whatever is demanded if you want to sell the property.

We have reached the end of our tether in trying to purchase the freehold in Victoria Docks. Can this matter be resolved via the Leasehold Valuation Tribunal?

in cases where there is a absentee landlord or where there is disagreement about the premium for a lease extension, under the relevant statutes you can apply to the LVT to make a decision on the premium.

An example of a Lease Extension decision for a Victoria Docks premises is 46 Credon Road in January 2014. On 11 September 2013 Deputy District Judge Price sitting at the Bow County Court made a vesting order that the freeholder surrender his lease and be granted a new lease of the Premises on such terms as may be determined by the First Tier Tribunal (Property Chamber).The appropriate sum as concluded by the Tribunal was £7225 This case related to 1 flat. The remaining number of years on the lease was 69.77 years.

Victoria Docks Leasehold Conveyancing - A selection of Queries Prior to Purchasing

Most Victoria Docks leasehold properties will incur a service charge for maintenance of the block levied by the landlord. Where you buy the flat you will have to pay this amount, normally in instalments during the year. This can differ from a few hundred pounds to thousands of pounds for buildings with lifts and large common grounds. There will also be a rentcharge to be met yearly, this is usually not a exorbitant sum, say around £50-£100 but you need to enquire as sometimes it can be many hundreds of pounds. Does the lease contain onerous restrictions?