I've recently bought a leasehold property in Wynyard. Do I have any liability for service charges relating to a period prior to my ownership?

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. 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 am employed by a reputable estate agent office in Wynyard where we have witnessed a few leasehold sales jeopardised as a result of short leases. I have been given inconsistent advice from local Wynyard conveyancing firms. Please can you clarify 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 kick-start the lease extension process and assign the benefit of the notice to the purchaser. The benefit of this is 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 prior to, or simultaneously with 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.

Can you offer any advice when it comes to choosing a Wynyard conveyancing practice to deal with our lease extension?

When appointing a solicitor for lease extension works (regardless if they are a Wynyard conveyancing practice) it is imperative that he or she should be familiar with the legislation and specialises in this area of work. We suggested that you make enquires with two or three firms including non Wynyard conveyancing practices prior to instructing a firm. Where the conveyancing practice is ALEP accredited then that’s a bonus. Some following of questions could be of use:

• What volume of lease extensions has the firm completed in Wynyard in the last 12 months?

If all goes to plan we aim to complete the sale of our £450000 flat in Wynyard in just under a week. The freeholder has quoted £360 for Landlord’s certificate, building insurance schedule and previous years statements of service charge. Is the landlord entitled to charge exorbitant fees for a flat conveyance in Wynyard?

Wynyard conveyancing on leasehold apartments usually requires the buyer’s conveyancer sending enquiries for the landlord to address. Although the landlord is under no legal obligation to answer these enquiries most will be content to assist. They are entitled levy a reasonable charge for answering questions or supplying documentation. There is no upper cap for such fees. The average costs for the information that you are referring to is over three hundred pounds, in some cases it is above £800. The administration charge levied by the landlord must be accompanied by a synopsis of rights and obligations in relation to administration charges, otherwise the invoice is technically not due. In reality you have little option but to pay whatever is demanded if you want to sell the property.

What are the frequently found deficiencies that you encounter in leases for Wynyard properties?

There is nothing unique about leasehold conveyancing in Wynyard. All leases are individual and legal mistakes in the legal wording can result in certain provisions are wrong. 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.
• Service charge per centages that don't add up correctly leaving a shortfall

You may have a problem when selling your property if you have a defective lease as they can affect a potential buyer’s ability to obtain a mortgage. Lloyds TSB Bank, Bank of Scotland, and Bank of Ireland all have express conveyancing instructions when it comes to what is expected in a lease. If a mortgage lender believes that the lease does not cover certain provisions they may refuse to provide security, forcing the buyer to withdraw.

Wynyard Leasehold Conveyancing - A selection of Queries before buying

Most Wynyard leasehold properties will have a service bill for the upkeep of the building levied by the management company. Where you buy the apartment you will have to meet this amount, usually quarterly throughout the year. This can differ from several hundred pounds to thousands of pounds for bigger purpose-built blocks. In all probability there will be a ground rent to be met annual, normally this is not a exorbitant figure, say approximately £25-£75 but you should to enquire it because on occasion it could be many hundreds of pounds. You should want to discover as much as possible concerning the managing agents as they will affect your use and enjoyment of the property. As the owner of a leasehold property you are frequently in the clutches of the managing agents both financially and when it comes to every day issues such as the upkeep of the common parts. Enquire of other tenants whether they are happy with them. Finally, find out the dates that the maintenance fees are due to the managing agents and precisely what you get for your money. How many years are left on the lease?

Other Topics

Lease Extensions in Wynyard