Questions and Answers: Yarm leasehold conveyancing
I am on look out for some leasehold conveyancing in Yarm. Before I get started I want to be sure as to the number of years remaining on the lease.
If the lease is recorded at the land registry - and most are in Yarm - then the leasehold title will always include the basic details of the lease, namely the date; the term; and the original parties. From a conveyancing perspective such details then enable any prospective buyer and lender to confirm that any lease they are looking at is the one relevant to that title.For any other purpose, such as confirming how long the term was granted for and calculating what is left, then the register should be sufficient on it's own.
Planning to exchange soon on a leasehold property in Yarm. Conveyancing lawyers assured me that they will have a report out to me tomorrow. What should I be looking out for?
The report on title for your leasehold conveyancing in Yarm should include some of the following:
- You should be sent a copy of the lease
I am hoping to put an offer on a small detached house that seems to be perfect, at a great price which is making it all the more appealing. I have since been informed that it's a leasehold rather than freehold. I would have thought that there are particular concerns buying a leasehold house in Yarm. Conveyancing solicitors have not yet been instructed. Will my lawyers set out the risks of buying a leasehold house in Yarm ?
The majority of houses in Yarm are freehold and not leasehold. In this scenario it’s worth having a local conveyancer used to dealing with such properties who can help the conveyancing process. it is apparent that you are buying in Yarm in which case you should be shopping around for a Yarm conveyancing solicitor and check that they are used to dealing with leasehold houses. First you will need to check the unexpired lease term. As a tenant you will not be at liberty to do whatever you want to the property. The lease will likely included provisions for example requiring the landlord’spermission to carry out changes to the property. It may be necessary to pay a contribution towards the maintenance of the estate where the house is part of an estate. Your conveyancer will advise you fully on all the issues.
I am looking at a two apartments in Yarm which have about 50 years unexpired on the leases. Do I need to be concerned?
There is no doubt about it. A leasehold flat in Yarm is a wasting asset as a result of the reducing lease term. The nearer the lease gets to zero years unexpired, the more it reduces the marketability of the premises. For most buyers and lenders, leases with under eighty years become less and less marketable. On a more positive 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 property 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 Yarm conveyancing experts who will explain the options available to you during an initial telephone conversation free of charge. More often than not it is possible to negotiate informally with the freeholder to extend 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.
Can you provide any advice for leasehold conveyancing in Yarm with the aim of expediting the sale process?
- A significant proportion of the delay in leasehold conveyancing in Yarm can be avoided if you get in touch lawyers the minute your agents start advertising the property and request that they start to put together the leasehold information which will be required by the purchasers’ conveyancers.
- Some Yarm leases require Licence to Assign from the landlord. If this applies to your lease, it would be prudent to place the estate agents on notice to make sure that the purchasers put in hand bank and professional references. The bank reference should make it clear that the buyer is able to meet the annual service charge and the actual amount of the service charge should be quoted in the bank’s letter. You will therefore need to provide your estate agents with the actual amount of the service charge so that they can pass this information on to the buyers or their solicitors.
Leasehold Conveyancing in Yarm - A selection of Questions you should ask Prior to Purchasing
Please note that where the lease has fewer than eighty years it will impact the salability of the flat. Check with your bank that they are content with remaining years on the lease. Leases with less than 80 years remaining means that you will almost definitely need a lease extension sooner rather than later and it is worth finding out what this would cost. Remember, in most cases you will need to own the residence for a couple of years in order to be eligible to carry out a lease extension.
Most Yarm leasehold properties will have a service bill for the upkeep of the building levied on behalf of the landlord. Where you buy the apartment you will have to pay this charge, normally quarterly during the year. This may be anything from two or three hundred pounds to thousands of pounds for large purpose-built blocks. There will also be a ground rent to be met annual, ordinarily this is not a large figure, say around £50-£100 but you should to check it because occasionally it could be prohibitively expensive.
Does the lease have onerous restrictions?