Is there a reason why leasehold purchase conveyancing in Lynton is more expensive?
In summary, leasehold conveyancing in Lynton and elsewhere usually warrants extra hours of investigation compared to freehold transactions. This includes lease investigation, corresponding with the landlord concerning the service of appropriate notices, procuring up-to-date service charge and management information, securing the landlord’s consents and reviewing management accounts. The obligations on both the landlord and the tenant in the lease need to be studied by the buyer’s conveyancing team and read from beginning to end – regardless of the fact the lease has passed through many different property solicitors hands since it was first granted.
We're in Lynton, FTBs buying with a mortgage (lender is Leeds Building Society , and our solicitor is on the Leeds Building Society conveyancing panel). How long should the conveyancing process take?
The fact that your lawyer is on the Leeds Building Society conveyancing panel is a help. It would almost certainly delay matters if they were not. However, no conveyancing practitioner should guarantee a timeframe for your conveyancing, due to third parties outside of your control such as delays caused by lenders,conveyancing search providers or by the other side’s solicitors. The time taken is often determined by the number of parties in a chain.
Are there restrictive covenants that are commonly identified as part of conveyancing in Lynton?
Covenants that are restrictive in nature can be picked up when reviewing land registry title as part of the process of conveyancing in Lynton. An 1874 stipulation that was seen was ‘The houses to be erected on the estate are each to be of a uniform elevation in accordance with the drawings to be prepared or approved by the vendor’s surveyor…’
I am tempted by the attractive purchase price for a couple of maisonettes in Lynton which have about forty five years left on the leases. Will this present a problem?
There is no doubt about it. A leasehold apartment in Lynton is a deteriorating asset as a result of the reducing lease term. The nearer the lease gets to zero years unexpired, the more it adversely affects the salability of the premises. For most purchasers and lenders, leases with less than eighty years become less and less attractive. On a more upbeat 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 premises 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 Lynton conveyancing experts who will explain the options available to you during an initial telephone conversation free of charge. A more straightforward and quicker method of extending would be to contact your landlord directly and sound him out on the prospect of extending the lease. They may agree to a smaller lump sum and an increase in the ground rent, but to shorter extension terms in return. 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.
Lynton Conveyancing for Leasehold Flats - Examples of Questions you should consider Prior to buying
Please note if it is no more than eighty years it will affect the salability of the apartment. It is worth checking with your mortgage company that they are content with residual term of the lease. Leases with fewer than 80 years remaining means that you will most likely require a lease extension at some point and you need to have some idea of what this would cost. Remember, in most cases you would need to own the property for a couple of years before you are legally able to exercise a lease extension. Who manages the building?
Why can I not complete my conveyancing in Lynton on Good Friday?
Because on completion the money will pass between the banks of the buyer and seller's conveyancing practitioner and currently this can only take place on a business day. It is not possible to complete on a weekend either.