Yarm leasehold conveyancing: Q and A’s
Looking forward to complete next month on a ground floor flat in Yarm. Conveyancing lawyers inform me that they are sending me a report on Monday. What should I be looking out for?
The report on title for your leasehold conveyancing in Yarm should include some of the following:
- Does the lease prohibit wood flooring?
Last month I purchased a leasehold flat in Yarm. 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 owner 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 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).
Can you offer any advice when it comes to appointing a Yarm conveyancing firm to carry out our lease extension conveyancing?
When appointing a property lawyer for your lease extension (regardless if they are a Yarm conveyancing practice) it is imperative that he or she should be familiar with the legislation and specialises in this area of work. We recommend that you make enquires with two or three firms including non Yarm conveyancing practices before you instructing a firm. If the firm is ALEP accredited then so much the better. Some following of questions could be helpful:
- If they are not ALEP accredited then why not?
Completion in due on our sale of a £125000 maisonette in Yarm next Tuesday . The management company has quoted £312 for Landlord’s certificate, insurance certificate and 3 years service charge statements. Is the landlord entitled to charge exorbitant fees for a leasehold conveyance in Yarm?
Yarm conveyancing on leasehold apartments usually involves the purchaser’s lawyer submitting questions for the landlord to address. Although the landlord is not legally bound to respond to these enquiries most will be willing to do so. They may charge a reasonable administration fee for responding to enquiries or supplying documentation. There is no set fee. The average fee for the paperwork that you are referring to is over three hundred pounds, in some transactions it is above £800. The administration charge invoiced by the landlord must be accompanied by a summary of rights and obligations in relation to administration fees, without which the invoice is technically not due. In reality one has little option but to pay whatever is requested of you if you want to sell the property.
What are the common defects that you see in leases for Yarm properties?
There is nothing unique about leasehold conveyancing in Yarm. Most leases is drafted differently and legal mistakes in the legal wording can result in certain provisions are missing. The following missing provisions could result in a defective lease:
- Repairing obligations to or maintain elements of the premises
- Insurance obligations
- 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 will 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. Barclays , Leeds Building Society, and TSB 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 pull out.
Yarm Leasehold Conveyancing - Examples of Queries Prior to Purchasing
What is the yearly service fee and ground rent?
Where a Yarm lease has no more than 80 years it will have adverse implications on the marketability of the property. It is worth checking with your lender that they are willing to lend given the lease term. A short lease means that you will almost definitely have to extend the lease at some point and it is worth finding out how much this would cost. For most Yarmlease extensions you would be be obliged to have owned the property for a couple of years in order to be entitled to carry out a lease extension.
It is important to be aware if a new roof is being put on or some other major work is pending that will be shared amongst the tenants and will dramatically impact the level of the service costs or result in a one off payment.