Common questions relating to Victoria Park leasehold conveyancing
I have just started marketing my basement flat in Victoria Park.Conveyancing solicitors are to be appointed soon but I have just had a quarterly maintenance charge invoice – Do I pay up?
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 managing agents 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. This will smooth the conveyancing process.
I am hoping to put an offer on a small detached house that appears to tick a lot of boxes, at a great figure which is making it all the more appealing. I have since found out that the title is leasehold rather than freehold. I am assuming that there are issues buying a house with a leasehold title in Victoria Park. Conveyancing lawyers have are soon to be appointed. Will my lawyers set out the risks of buying a leasehold house in Victoria Park ?
The majority of houses in Victoria Park are freehold and not leasehold. This is one of the situations where having a local conveyancer used to dealing with such properties who can help the conveyancing process. We note that you are buying in Victoria Park so you should seriously consider shopping around for a Victoria Park conveyancing solicitor and be sure that they are used to transacting on leasehold houses. First you will need to check the unexpired lease term. As a tenant you will not be at liberty to do whatever you want to the property. The lease comes with conditions such as obtaining the landlord’spermission to conduct alterations. It may be necessary to pay a maintenance charge towards the upkeep of the estate where the property is part of an estate. Your solicitor will report to you on the legal implications.
I've recently bought a leasehold flat in Victoria Park. Am I liable to pay service charges for periods before completion of my purchase?
In a situation 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. Strange as it may seem, your landlord may still be able to take action to forfeit the lease. A critical element 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).
I work for a reputable estate agency in Victoria Park where we see a few leasehold sales put at risk due to short leases. I have been given contradictory information from local Victoria Park conveyancing solicitors. Can you shed some light as to whether the owner of a flat can start the lease extension process for the purchaser on completion of the sale?
Provided that the seller has been the owner for at least 2 years it is possible, to serve a Section 42 notice to commence the lease extension process and assign the benefit of the notice to the purchaser. This means that the buyer need not have to sit tight for 2 years to extend their lease. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed before, or at the same time as completion of the sale.
An alternative approach is to extend the lease informally by agreement with the landlord 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 buyer.
All being well we will complete the sale of our £475000 garden flat in Victoria Park next Friday . The freeholder has quoted £396 for Landlord’s certificate, building insurance schedule and previous years statements of service charge. Is it legal for a freeholder to charge an administration fee for a flat conveyance in Victoria Park?
Victoria Park conveyancing on leasehold maisonettes often necessitates the buyer’s conveyancer submitting enquiries for the landlord to answer. Although the landlord is not legally bound to address these enquiries most will be content to assist. They are entitled levy a reasonable administration fee 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 situations it is above £800. The management information fee invoiced by the landlord must be sent together with a synopsis of rights and obligations in respect of administration charges, otherwise the invoice is technically not due. Reality however dictates that one has no option but to pay whatever is demanded if you want to sell the property.
Leasehold Conveyancing in Victoria Park - Sample of Queries before Purchasing
Plenty Victoria Park leasehold flats will incur a service charge for the upkeep of the building invoiced on behalf of the management company. If you acquire the flat you will have to meet this liability, normally quarterly accross the year. This could be anything from several hundred pounds to thousands of pounds for bigger purpose-built blocks. In all probability there will be a ground rent for you to pay yearly, this is usually not a large amount, say about £50-£100 but you need to enquire as occasionally it can be surprisingly expensive.
The best form of lease arrangement is a share of the freehold. In this scenario the tenants enjoy control and even though a managing agent is often retained if the building is bigger than a house conversion, the managing agent acts for the leaseholders themselves.
Best to be warned whether a new roof is being installed or some other major work is pending to be shared between the leaseholders and will dramatically impact the level of the maintenance charges or necessitate a one off invoice.