Frequently asked questions relating to Winchelsea leasehold conveyancing
Back In 2007, I bought a leasehold house in Winchelsea. Conveyancing and Halifax mortgage are in place. A letter has just been received from someone claiming to own the freehold. It included a demand for arrears of ground rent dating back to 1994. The conveyancing practitioner in Winchelsea who previously acted has now retired.Do I pay?
First make enquiries of the Land Registry to be sure that the individual purporting to own the freehold is indeed the registered owner of the freehold reversion. You do not need to instruct a Winchelsea conveyancing firm to do this as it can be done on-line for a few pound. Rest assured that regardless, even if this is the rightful landlord, under the Limitation Act 1980 no more than 6 years of rent can be collected.
I am tempted by the attractive purchase price for a couple of flats in Winchelsea both have approximately fifty years remaining on the leases. should I be concerned?
There are plenty of short leases in Winchelsea. The lease is a right to use the premises for a period of time. As the lease shortens the value of the lease decreases and it becomes more expensive to acquire a lease extension. This is why it is advisable to increase the term of the lease. More often than not it is difficult to sell a property with a short lease as mortgage lenders less inclined to grant a loan on such properties. Lease enfranchisement can be a difficult process. We advise that you seek professional help from a conveyancer and surveyor with experience in this area
Last month I purchased a leasehold house in Winchelsea. Do I have any liability for service charges relating to a period prior to completion of my purchase?
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).
Can you provide any advice for leasehold conveyancing in Winchelsea from the point of view of speeding up the sale process?
- A significant proportion of the delay in leasehold conveyancing in Winchelsea can be bypassed if you instruct lawyers the minute your agents start advertising the property and request that they start to collate the leasehold documentation needed by the purchasers’ representatives.
- Many freeholders or managing agents in Winchelsea levy fees for supplying management packs for a leasehold premises. You or your lawyers should discover the fee that they propose to charge. The management information sought as soon as you have a buyer, thus accelerating the process. The typical amount of time it takes to receive management information is three weeks. It is the most frequent cause of delay in leasehold conveyancing in Winchelsea.
What makes a Winchelsea lease unacceptable for security purposes?
There is nothing unique about leasehold conveyancing in Winchelsea. All leases are unique and legal mistakes in the legal wording can sometimes mean that certain clauses are wrong. The following missing provisions could result in a defective lease:
- A provision to repair to or maintain elements of the property
- A duty to insure the building
- 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
A defective lease will likely cause issues when trying to sell a property as they can affect a potential buyer’s ability to obtain a mortgage. Lloyds TSB Bank, Barnsley Building Society, and Clydesdale all have very detailed conveyancing instructions when it comes to what is expected in a lease. Where a lender has been advised by their lawyers that the lease is defective they may refuse to provide security, forcing the purchaser to withdraw.
Winchelsea Conveyancing for Leasehold Flats - Sample of Questions you should consider Prior to Purchasing
The best form of lease arrangement is a share of the freehold. In this arrangement the leaseholders enjoy being in charge if their destiny and even though a managing agent is frequently employed if the building is bigger than a house conversion, the managing agent is directed by the tenants.
Who are the managing agents?
You should want to find out as much as you can concerning the company managing the block as they can either make your life much simpler or problematic. Being a leasehold owner you will be in the clutches of the managing agents both financially and when it comes to day to day matters such as the cleanliness of the communal areas. Ask other people what they think of them. In conclusion, find out the dates that the maintenance charges are due to the managing agents and precisely how they are spending the funds.