My wife and I purchased a leasehold house in Woburn Sands. Conveyancing and National Westminster Bank 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 1996. The conveyancing solicitor in Woburn Sands who previously acted has now retired.What should I do?

First make enquiries of HMLR to be sure that this person is indeed the new freeholder. It is not necessary to incur the fees of a Woburn Sands conveyancing solicitor to do this as it can be done on-line for a few pound. Rest assured that regardless, even if this is the rightful freeholder, under the Limitation Act 1980 the limitation period for recovery of ground rent is six years.

I am tempted by the attractive purchase price for a two flats in Woburn Sands both have approximately fifty years left on the leases. Should I regard a short lease as a deal breaker?

There is no doubt about it. A leasehold flat in Woburn Sands 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 mortgage companies, leases with under 75 years become less and less marketable. On a more upbeat 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 premises 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 Woburn Sands 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 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.

Last month I purchased a leasehold flat in Woburn Sands. Am I liable to pay service charges for periods before completion of my purchase?

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. However, your landlord may still be able to take action to forfeit the lease. A critical element 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 Woburn Sands from the perspective of speeding up the sale process?

• A significant proportion of the frustration in leasehold conveyancing in Woburn Sands can be reduced where you appoint lawyers as soon as you market your property and ask them to collate the leasehold documentation needed by the buyers solicitors.
• If you have carried out any alterations to the premises would they have required Landlord’s permission? Have you, for example laid down wooden flooring? Woburn Sands leases often stipulate that internal structural changes or laying down wooden flooring require a licence issued by the Landlord consenting to such alterations. Where you fail to have the approvals in place do not contact the landlord without contacting your conveyancer before hand.

In relation to leasehold conveyancing in Woburn Sands what are the most common lease defects?

Leasehold conveyancing in Woburn Sands is not unique. Most leases are unique and legal mistakes in the legal wording can sometimes mean that certain clauses are erroneous. The following missing provisions could result in a defective lease:

• A provision to repair to or maintain elements of the building
• Insurance obligations
• Clauses dealing with recovering service charges for expenditure on the building or common parts.
• Service charge per centages that don't add up correctly leaving a shortfall

You could 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. HSBC Bank, Coventry Building Society, and Nottingham Building Society all have very detailed requirements 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, obliging the buyer to withdraw.

Woburn Sands Leasehold Conveyancing - Examples of Queries Prior to buying

Please note if it is no more than 80 years it will affect the marketability of the flat. Check with your lender that they are happy with the length of the lease. A short lease means that you will almost definitely need a lease extension at some point and you need to have some idea of how much this will be. Remember, in most cases you would need to own the premises for 24 months before you are entitled to extend the lease. Please tell me if there are any major works on the horizon that will increase the service charges? Many Woburn Sands leasehold apartments will be liable to pay a service bill for maintenance of the building levied on behalf of the freeholder. If you acquire the flat you will have to pay this charge, normally in instalments during the year. This could differ from two or three hundred pounds to thousands of pounds for large purpose-built buildings. In all likelihood there will be a rentcharge for you to pay annual, normally this is not a exorbitant sum, say about £50-£100 but you need to enquire as sometimes it could be many hundreds of pounds.

Other Topics

Lease Extensions in Woburn Sands