Estate agents have just been given the go-ahead to market my ground floor apartment in Salford.Conveyancing has not commenced but I have just received a yearly maintenance charge demand – Do I pay up?

The sensible thing to do is pay the service charge as normal because all ground rent and service charges will be apportioned on completion, so you will be reimbursed by the buyer for the period running from after the completion date to the next payment date. Most management companies will not acknowledge the buyer unless the service charges have been paid and are up to date so it is important for both buyer and seller for the seller to show that they are up to date. Having a clear account will assist your cause and will leave you no worse off financially.

I am employed by a long established estate agent office in Salford where we have witnessed a number of flat sales derailed as a result of leases having less than 80 years remaining. I have been given inconsistent advice from local Salford conveyancing solicitors. Can you confirm whether the vendor of a flat can start the lease extension formalities for the purchaser on completion of the sale?

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. The benefit of this is that the buyer can avoid having to wait 2 years to extend their lease. Both sets of lawyers will agree to form of assignment. The assignment has to be done prior to, or simultaneously with completion of the sale.

Alternatively, it may be possible 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.

Can you provide any top tips for leasehold conveyancing in Salford from the perspective of saving time on the sale process?

• A significant proportion of the frustration in leasehold conveyancing in Salford can be bypassed where you get in touch lawyers the minute your agents start advertising the property and request that they start to put together the leasehold information needed by the buyers conveyancers.
• Many landlords or managing agents in Salford charge for supplying management packs for a leasehold homes. You or your lawyers should discover the actual amount of the charges. The management pack sought on or before finding a buyer, thus accelerating the process. The typical amount of time it takes to obtain the necessary information is three weeks. It is the most frequent cause of frustration in leasehold conveyancing in Salford.

If all goes to plan we aim to complete the sale of our £275000 maisonette in Salford next week. The management company has quoted £384 for Certificate of Compliance, insurance certificate and 3 years statements of service charge. Is the landlord entitled to charge such fees for a leasehold conveyance in Salford?

Salford conveyancing on leasehold flats more often than not necessitates the buyer’s solicitor sending enquiries for the landlord to address. Although the landlord is under no legal obligation to respond to these enquiries the majority will be content to do so. They may invoice a reasonable charge for responding to enquiries or supplying documentation. There is no upper cap for such fees. The average fee for the information that you are referring to is over three hundred pounds, in some situations it is in excess of £800. The management information fee demanded by the landlord must be accompanied by a synopsis of entitlements and obligations in relation to administration fees, otherwise the charge is technically not due. In reality one has little option but to pay whatever is requested of you if you want to exchange contracts with the buyer.

Are there common defects that you encounter in leases for Salford properties?

Leasehold conveyancing in Salford is not unique. Most leases is drafted differently and drafting errors can result in certain sections are wrong. For example, if your lease is missing any of the following, it could be defective:

• A provision to repair to or maintain parts of the building
• A duty to insure the building
• Clauses dealing with recovering service charges for expenditure on the building or common parts.
• Service charge per centages that don't add up correctly leaving a shortfall

A defective lease will likely cause problems when trying to sell a property primarily because it impacts on the ability to obtain a mortgage on the property. Lloyds TSB Bank, The Royal Bank of Scotland, and Alliance & Leicester all have very detailed conveyancing instructions when it comes to what is expected in a lease. If a mortgage lender believes that the lease is defective they may refuse to grant the mortgage, forcing the buyer to pull out.

Salford Conveyancing for Leasehold Flats - Sample of Questions you should consider before Purchasing

You should be aware if it is fewer than eighty years it will impact the value of the apartment. Check with your mortgage company that they are willing to lend given the lease term. A short lease means that you will almost definitely have to extend the lease sooner rather than later and you need to have some idea of what this will be. For most Salfordlease extensions you will need to own the residence for a couple of years before you are eligible to extend the lease. The best form of lease arrangement is if the freehold interest is owned by the leaseholders. In this scenario the lessees benefit from being in charge if their destiny and notwithstanding that a managing agent is often employed where the building is bigger than a house conversion, the managing agent employed by the leaseholders. Is anyone aware of any major works in the near future that will likely increase the maintenance costs?

Other Topics

Lease Extensions in Salford