Planning to sign contracts shortly on a garden flat in Woodbury. Conveyancing solicitors inform me that they will have a report out to me within the next couple of days. What should I be looking out for?

Your report on title for your leasehold conveyancing in Woodbury should include some of the following:

• You should be sent a copy of the lease

My wife and I purchased a leasehold flat in Woodbury. Conveyancing and Alliance & Leicester mortgage went though with no issue. A letter has just been received from someone saying they have taken over the freehold. It included a demand for arrears of ground rent dating back to 1997. The conveyancing solicitor in Woodbury who previously acted has long since retired.Any advice?

The first thing you should do is make enquiries of HMLR to make sure that the individual purporting to own the freehold is in fact the new freeholder. It is not necessary to instruct a Woodbury conveyancing solicitor to do this as you can do this on the Land Registry website for a few pound. You should note 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 Woodbury which have approximately fifty years left on the leases. Should I regard a short lease as a deal breaker?

There are plenty of short leases in Woodbury. The lease is a legal document that entitles you to use the premises for a prescribed time frame. As a lease shortens the saleability of the lease decreases and results in it becoming more expensive to acquire a lease extension. For this reason it is generally wise to increase the term of the lease. Sometimes it is difficult to sell a property with a short lease as mortgage companies may be reluctant to lend money on such properties. Lease extension can be a protracted process. We recommend you get professional assistance from a conveyancer and surveyor with experience in this area

I am a negotiator for a reputable estate agent office in Woodbury where we have experienced a few leasehold sales derailed as a result of short leases. I have received inconsistent advice from local Woodbury conveyancing solicitors. Please can you confirm whether the owner of a flat can commence the lease extension formalities 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 commence the lease extension process and assign the benefit of the notice to the purchaser. This means that the buyer can avoid having to wait 2 years for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed before, or simultaneously with completion of the disposal of the property.

Alternatively, it may be possible 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.

What are the frequently found problems that you witness in leases for Woodbury properties?

Leasehold conveyancing in Woodbury is not unique. All leases is drafted differently and legal mistakes in the legal wording can sometimes mean that certain clauses are not included. The following missing provisions could result in a defective lease:

• A provision to repair to or maintain parts of the premises
• 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 problems when trying to sell a property primarily because it impacts on the ability to obtain a mortgage on the property. Accord Mortgages Ltd, Virgin Money, and Nottingham Building Society all have express conveyancing instructions when it comes to what is expected in a lease. If a mortgage lender believes that the lease is problematic they may refuse to provide security, obliging the purchaser to withdraw.

Woodbury Leasehold Conveyancing - Sample of Queries before Purchasing

This question is useful as a) areas can result in problems for the building as the common areas may start to deteriorate where repairs are not paid for b) if the tenants have an issue with the managing agents you will want to know about it Is the freehold reversion owned collectively by the tenants? It is important to be aware whether a new roof is being installed or some other significant cost is due in the near future that will be shared between the tenants and will materially impact the level of the service fees or necessitate a specific payment.

Other Topics

Lease Extensions in Woodbury