I've found a house that appears to be perfect, at a great figure which is making it all the more appealing. I have subsequently found out that the title is leasehold as opposed to freehold. I am assuming that there are issues purchasing a house with a leasehold title in Shoreditch. Conveyancing solicitors have not yet been instructed. Will my lawyers set out the risks of buying a leasehold house in Shoreditch ?

The majority of houses in Shoreditch are freehold and not leasehold. This is one of the situations where having a local conveyancer used to dealing with such properties who can assist with the conveyancing process. It is clear that you are buying in Shoreditch so you should seriously consider shopping around for a Shoreditch conveyancing solicitor and check that they have experience in dealing with leasehold houses. First you will need to check the number of years remaining. As a leaseholder you will not be at liberty to do whatever you want with the house. The lease comes with conditions for example requiring the freeholder’sconsent to carry out changes to the property. It may be necessary to pay a contribution towards the upkeep of the communal areas where the house is part of an estate. Your solicitor will appraise you on the various issues.

I've recently bought a leasehold property in Shoreditch. Do I have any liability for service charges relating to a period prior to my ownership?

In a situation where the service charge has already been demanded from the previous lessee and they have not paid you would not usually be personally liable for the arrears. However, your landlord may still be able to take action to forfeit the lease. A critical element 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 a negotiator for a busy estate agency in Shoreditch where we have witnessed a number of leasehold sales jeopardised as a result of short leases. I have been given contradictory information from local Shoreditch conveyancing firms. Could you confirm whether the seller of a flat can instigate the lease extension process for the buyer?

As long as the seller has owned the lease 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 need not have to wait 2 years for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment has to be done before, or at the same time as completion of the disposal of the property.

An alternative approach is to extend the lease informally by agreement with the landlord 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 provide any top tips for leasehold conveyancing in Shoreditch with the intention of expediting the sale process?

• A significant proportion of the delay in leasehold conveyancing in Shoreditch can be avoided if you get in touch lawyers as soon as you market your property and ask them to put together the leasehold documentation which will be required by the purchasers’ conveyancers.
• In the event that you altered the property did you need the Landlord’s consent? Have you, for example installed wooden flooring? Most leases in Shoreditch state that internal structural changes or installing wooden flooring require a licence from the Landlord acquiescing to such works. Where you fail to have the approvals in place you should not contact the landlord without contacting your conveyancer in advance.
• A minority of Shoreditch leases require Landlord’s consent to the sale and approval of the buyers. If this applies to your lease, you should place the estate agents on notice to make sure that the purchasers obtain financial (bank) and professional references. Any 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 purchasers or their lawyers.
• If you hold a share in a the Management Company, you should make sure that you hold the original share certificate. Obtaining a new share certificate is often a time consuming process and slows down many a Shoreditch home move. Where a new share certificate is necessary, you should approach the company director and secretary or managing agents (where applicable) for this sooner rather than later.
• You may think that you are aware of the number of years remaining on your lease but you should verify this via your lawyers. A purchaser's lawyer will be unlikely to recommend their client to where the lease term is below 75 years. It is therefore essential at an early stage that you consider whether the lease term requires a lease extension. If it does, contact your solicitors before you put your premises on the market for sale.

If all goes to plan we aim to complete the sale of our £ 225000 garden flat in Shoreditch on Thursday in a week. The landlords agents has quoted £<Macro 'feeRangeWithVAT'> for Certificate of Compliance, building insurance schedule and previous years statements of service charge. Is it legal for a freeholder to charge an administration fee for a leasehold conveyance in Shoreditch?

Shoreditch conveyancing on leasehold maisonettes nine out of ten times results in administration charges invoiced by managing agents :

• Completing conveyancing due diligence enquiries
• Where consent is required before sale in Shoreditch
• Supplying insurance information
• Deeds of covenant upon sale
• Registering of the assignment of the change of lessee after a sale

Your solicitor will have no control over the level of the charges for this information but the average costs for the information for Shoreditch leasehold property is £350. For Shoreditch conveyancing transactions it is customary for the seller to pay for these costs. The landlord or their agents are under no legal obligation to answer such questions most will be willing to do so - albeit often at exorbitant prices where the fees bear little relation to the work involved. Unfortunately there is no law that requires fixed charges for administrative tasks. Neither is there any legal time frame by which they are obliged to provide answers.

I have tried to negotiate informally with with my landlord for a lease extension without success. Can a leaseholder apply to the Leasehold Valuation Tribunal? Can you recommend a Shoreditch conveyancing firm to assist?

if there is a absentee freeholder or where there is dispute about what the lease extension should cost, under the Leasehold Reform, Housing and Urban Development Act 1993 you can apply to the Leasehold Valuation Tribunal to decide the sum to be paid.

An example of a Lease Extension case for a Shoreditch residence is 137 & 139 Haberdasher Street in December 2013. The Tribunal determines in accordance with section 48 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 that the premium for the extended lease for each Property should be £12,350.00. This case related to 2 flats. The the unexpired term as at the valuation date was 72.39 years.

Shoreditch Conveyancing for Leasehold Flats - A selection of Questions you should consider Prior to Purchasing

Does this lease have more than 80 years remaining? The answer will be useful as a) areas could cause problems in the block as the common areas may begin to deteriorate where services are not paid for b) if the tenants have a dispute with the managing agents you will wish to have complete disclosure Plenty Shoreditch leasehold properties will incur a service charge for maintenance of the block set on behalf of the landlord. Where you purchase the apartment you will have to pay this liability, normally periodically throughout the year. This may differ from a few hundred pounds to thousands of pounds for bigger purpose-built blocks. There will also be a rentcharge to be met annual, this is usually not a significant figure, say around £50-£100 but you need to check as on occasion it could be many hundreds of pounds.