I have just appointed agents to market my ground floor flat in Wolverhampton.Conveyancing is yet to be initiated but I have just received a half-yearly service charge invoice – should I leave it to the buyer to sort out?

Your conveyancing lawyer is likely to suggest that you should clear 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 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. Having a clear account will assist your cause and will leave you no worse off financially.

I am tempted by the attractive purchase price for a two apartments in Wolverhampton which have in the region of 50 years unexpired on the leases. should I be concerned?

There is no doubt about it. A leasehold flat in Wolverhampton is a deteriorating asset as a result of the shortening lease. The nearer the lease gets to its expiry date, the more it reduces the salability of the premises. The majority of buyers and lenders, 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 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 Wolverhampton conveyancing experts who will explain the options available to you during an initial telephone conversation free of charge. A more straightforward and quicker method of extending would be to contact your landlord directly and sound him out on the prospect of extending 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.

I am a negotiator for a long established estate agent office in Wolverhampton where we have experienced a number of leasehold sales put at risk as a result of short leases. I have been given inconsistent advice from local Wolverhampton conveyancing firms. Could you shed some light as to whether the owner of a flat can initiate the lease extension process for the purchaser on completion of the sale?

Provided that the seller has owned the lease for at least 2 years it is possible, to serve a Section 42 notice to start the lease extension process and assign the benefit of the notice to the purchaser. This means that the proposed purchaser need not have to sit tight for 2 years for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed prior to, or at the same time as completion of the sale.

An alternative approach is to agree the lease extension with the freeholder 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 purchaser.

What are your top tips when it comes to choosing a Wolverhampton conveyancing firm to carry out our lease extension conveyancing?

If you are instructing a solicitor for your lease extension (regardless if they are a Wolverhampton conveyancing firm) it is essential that he or she should be familiar with the legislation and specialises in this area of conveyancing. We advise that you talk with two or three firms including non Wolverhampton conveyancing practices before you instructing a firm. If the firm is ALEP accredited then so much the better. Some following of questions might be helpful:

• If the firm is not ALEP accredited then what is the reason?

Can you provide any top tips for leasehold conveyancing in Wolverhampton with the purpose of saving time on the sale process?

• Much of the delay in leasehold conveyancing in Wolverhampton can be bypassed if you appoint lawyers as soon as you market your property and ask them to put together the leasehold information which will be required by the purchasers’ solicitors.
• In the event that you altered the property did you need the Landlord’s consent? In particular have you installed wooden flooring? Wolverhampton leases often stipulate that internal structural changes or laying down wooden flooring necessitate a licence issued by the Landlord acquiescing to such works. Where you fail to have the consents in place do not communicate with the landlord without checking with your conveyancer before hand.

Leasehold Conveyancing in Wolverhampton - Examples of Queries before Purchasing

What prohibitions are there in the Wolverhampton Lease? It is important to be aware whether changing the roof or some other major work is anticipated that will be shared by the leaseholders and may well dramatically increase the the service costs or necessitate a one off payment. On the whole the outlay for major works tend not to be included within maintenance charges, albeit that there some managing agents in Wolverhampton obliged tenants to contribute towards a reserve fund created for the specific intention of building a fund for larger works.

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Lease Extensions in Wolverhampton