Recently asked questions relating to Yarm leasehold conveyancing
Planning to exchange soon on a basement flat in Yarm. Conveyancing solicitors inform me that they report fully on Monday. Are there areas in the report that I should be focusing on?
The report on title for your leasehold conveyancing in Yarm should include some of the following:
- Defining your rights in relation to common areas in the block.By way of example, does the lease permit a right of way over an accessway or staircase?
I am hoping to put an offer on a small detached house that appears to meet my requirements, at a great price which is making it more attractive. I have since been informed that the title is leasehold rather than freehold. I am assuming that there are issues buying a leasehold house in Yarm. Conveyancing advisers have are soon to be appointed. Will they explain the issues?
Most houses in Yarm are freehold rather than leasehold. In this scenario it’s worth having a local solicitor who is familiar with the area can assist with the conveyancing process. We note that you are purchasing in Yarm so you should seriously consider shopping around for a Yarm conveyancing practitioner and check that they have experience in transacting on leasehold houses. As a matter of priority you will need to check the number of years remaining. As a leaseholder you will not be at liberty to do whatever you want to the property. The lease comes with conditions such as requiring the landlord’sconsent to carry out alterations. You may also be required to pay a contribution towards the upkeep of the estate where the property is part of an estate. Your conveyancer will report to you on the legal implications.
Last month I purchased a leasehold property in Yarm. 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 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).
I am employed by a long established estate agency in Yarm where we see a number of leasehold sales derailed as a result of leases having less than 80 years remaining. I have received conflicting advice from local Yarm conveyancing firms. Please can you clarify whether the owner of a flat can commence the lease extension process for the purchaser on completion of the sale?
As long as the seller has been the owner 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 can avoid having 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 before, or simultaneously with completion of the disposal of the property.
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 Yarm conveyancing firm to carry out our lease extension conveyancing?
When appointing a solicitor for your lease extension (regardless if they are a Yarm conveyancing practice) it is essential that he or she should be familiar with the legislation and specialises in this area of conveyancing. We recommend that you talk with two or three firms including non Yarm conveyancing practices prior to instructing a firm. Where the conveyancing practice is ALEP accredited then that’s a bonus. Some following of questions might be helpful:
- How experienced is the firm with lease extension legislation?
Yarm Conveyancing for Leasehold Flats - Sample of Questions you should ask Prior to Purchasing
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Is anyone aware of any major works in the near future that will likely increase the service fees?
The prefered form of lease arrangement is a share of the freehold. In this situation the leaseholders enjoy control and even though a managing agent is usually employed if it is larger than a house conversion, the managing agent retained by the leaseholders.
Please note if it is fewer than eighty years it will have adverse implications on the marketability of the apartment. Check with your mortgage company that they are content with the length of the lease. Leases with fewer than 80 years remaining means that you will probably have to extend the lease at some point and it is worth discovering what this will be. For most Yarmlease extensions you would be required to have owned the premises for two years before you are eligible to extend the lease.
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