Is there a reason why leasehold purchase conveyancing in South Molton costs more?

In summary, leasehold conveyancing in South Molton and elsewhere usually involve more hours of investigation compared to freehold conveyancing. This includes analysing the lease terms, communicating with the landlord concerning serving appropriate notices, procuring up-to-date service charge and management information, obtaining 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 entered into.

We are intent on selling our home in South Molton and the buyers lawyers are claiming that there is a risk of it being constructed land that was not decontaminated. Any local conveyancer would know that there is no such problem. It does beg the question why the purchasers instructed a factory type conveyancing practice as opposed to a conveyancing solicitor in South Molton. We have lived in South Molton for 4 years we know of no issue. Should we get in touch with our local Authority to get clarification that the buyers are looking for.

It sounds as though you may have a conveyancing firm currently acting for you. What do they say? You need to enquire of your lawyer before you do anything. It is very possible that once the local authority has been informed of a potential issue it cannot be insured against (a bit like being diagnosed with a serious illness and then taking out health insurance to cover that same sickness)

How does conveyancing in South Molton differ for newly converted properties?

Most buyers of new build property in South Molton approach us having been asked by the housebuilder to exchange contracts and commit to the purchase even before the house is finished. This is because developers in South Molton usually acquire the real estate, plan the estate and want to get the plots sold off as they are building the properties. Buyers, therefore, will have to exchange contracts without actually seeing the house they are buying. To reduce the chances of losing the property, buyers should instruct property lawyers as soon as the property is reserved and mortgage applications should be submitted quickly. Due to the fact that it could be several months and even years between exchange of contracts and completion, the mortgage offer may need to be extended. It would be wise to use a lawyer who specialises in new build conveyancing especially if they are accustomed to new build conveyancing in South Molton or who has acted in the same development.

I am a negotiator for a reputable estate agency in South Molton where we have witnessed a number of flat sales derailed as a result of leases having less than 80 years remaining. I have received contradictory information from local South Molton conveyancing firms. Could you clarify whether the owner of a flat can instigate 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 commence the lease extension process and assign the benefit of the notice to the purchaser. The benefit of this is that the proposed purchaser 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 before, or at the same time as 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 buyer.

Leasehold Conveyancing in South Molton - Sample of Queries Prior to Purchasing

How is the lease structured? Does the lease have more than 85 years left? If a South Molton lease has no more than 80 years it will have adverse implications on the marketability of the apartment. Check with your lender that they are willing to lend given the lease term. Leases with less than 80 years remaining means that you will almost definitely require a lease extension at some point and it is worth discovering how much this would cost. For most South Moltonlease extensions you will need to own the property for two years in order to be eligible to extend the lease.

We own a leasehold flat in South Molton. Conveyancing was finalised in five years ago. I have heard that I should not allow the the remaining lease term to get too low. Is this correct?

South Molton leasehold properties are for a fixed term - often just under one hundred years when they commenced. However many flats in South Molton were constructed or converted 25 or more years ago and so these leases now have less than 80 years left to run. That may seem like a long time however Banks, Building Societies and other mortgage institutions on the whole require leases to have at least 75 years unexpired to be mortgageable. This means that when you come to sell the property you will need to extend the term of your lease if you are getting close to eighty years. To maximise your property value you should be considering whether to extend your lease well in advance of selling the property. You should note that there are significant benefits to doing so before the lease reaches even eighty years as when the lease is less than 80 years the amount you have to pay to extend starts to get a lot more expensive.