Frank (my husband) and I may need to sub-let our South Hackney basement flat temporarily due to taking a sabbatical. We instructed a South Hackney conveyancing firm in 2004 but they have closed and we did not think at the time seek any advice as to whether the lease prohibits the subletting of the flat. How do we find out?

Some leases for properties in South Hackney do contain a provision to say that subletting is only allowed with permission. The landlord cannot unreasonably refuse but, in such cases, they would need to see references. Experience suggests that problems are usually caused by unsatisfactory tenants rather than owner-occupiers and for that reason you can expect the freeholder to take up the references and consider them carefully before granting permission.

I own a leasehold flat in South Hackney. Conveyancing and Yorkshire Building Society mortgage are in place. A letter has just been received from someone saying they have taken over the reversionary interest in the property. It included a demand for arrears of ground rent dating back to 1997. The conveyancing practitioner in South Hackney who previously acted has long since retired.Do I pay?

First make enquiries of HMLR to be sure that this person is in fact the new freeholder. There is no need to incur the fees of a South Hackney conveyancing practitioner to do this as you can do this on the Land Registry website for a few pound. You should note that in any event, even if this is the rightful freeholder, under the Limitation Act 1980 the limitation period for recovery of ground rent is six years.

I am tempted by the attractive purchase price for a two maisonettes in South Hackney which have approximately forty five years remaining on the lease term. Should I regard a short lease as a deal breaker?

There are plenty of short leases in South Hackney. The lease is a right to use the premises for a period of time. As the lease gets shorter the marketability of the lease decreases and results in it becoming more costly to extend the lease. For this reason it is generally wise to increase the term of the lease. Sometimes it is difficult to sell a property with a short lease as mortgage companies may be reluctant to lend money on properties of this type. Lease extension can be a protracted process. We recommend you seek professional assistance from a conveyancer and surveyor with experience in this arena

I work for a busy estate agent office in South Hackney where we see a few flat sales jeopardised as a result of short leases. I have received conflicting advice from local South Hackney conveyancing solicitors. Can you confirm whether the owner of a flat can instigate the lease extension process 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 kick-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 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 prior to, or simultaneously with completion of the disposal of the property.

Alternatively, it may be possible 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 advice for leasehold conveyancing in South Hackney from the point of view of saving time on the sale process?

• Much of the frustration in leasehold conveyancing in South Hackney can be reduced where you instruct lawyers as soon as you market your property and ask them to collate the leasehold documentation needed by the buyers representatives.
• In the event that you altered the property did you need the Landlord’s approval? In particular have you laid down wooden flooring? South Hackney leases often stipulate that internal structural changes or addition of wooden flooring require a licence from the Landlord consenting to such works. Should you dont have the approvals to hand do not contact the landlord without contacting your conveyancer in the first instance.
• A minority of South Hackney leases require Landlord’s consent to the sale and approval of the buyers. If this is the case, it would be prudent to place the estate agents on notice to make sure that the purchasers obtain financial (bank) and professional references. The bank reference will need to confirm that the buyers are 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 service charge figures so that they can pass this information on to the purchasers or their lawyers.
• If you are supposed to have a share in the freehold, you should make sure that you are holding the original share certificate. Obtaining a duplicate share certificate can be a time consuming formality and slows down many a South Hackney conveyancing deal. Where a new share is needed, you should approach the company officers or managing agents (if relevant) for this as soon as possible.
• You may think that you are aware of the number of years remaining on your lease but it would be wise to verify this by asking your solicitors. A buyer’s lawyer will not be happy to advise their client to to exchange contracts if the lease term is less than 75 years. It is therefore essential at an early stage that you consider whether the lease for your property needs extending. If it does, contact your solicitors before you put your home on the market for sale.

My wife and I have hit a brick wall in trying to purchase the freehold in South Hackney. Can the Leasehold Valuation Tribunal adjudicate on premiums?

Most definitely. We are happy to put you in touch with a South Hackney conveyancing firm who can help.

An example of a Freehold Enfranchisement decision for a South Hackney property is 150 Amhurst Road in December 2013. The tribunal concluded that the premium to be paid by the applicant for the enfranchisement of the subject property was £43,500. This case was in relation to 4 flats. The the number of years remaining on the existing lease(s) was 90 (or thereabouts).

Leasehold Conveyancing in South Hackney - Examples of Queries before buying

Best to be warned whether window replacement or some other significant cost is pending that will be shared between the tenants and will dramatically increase the the service charges or result in a one time payment.