I own a freehold premises in South Hornchurch but nevertheless charged rent, why is this and what is this?

It’s unusual for properties in South Hornchurch and has limited impact for conveyancing in South Hornchurch but some freehold properties in England (particularly common in North West England) pay an annual sum known as a Chief Rent or a Rentcharge to a third party who has no other legal interest in the land.

Rentcharge payments are usually between £2.00 and £5.00 per year. Rentcharges date back hundreds of years, but the Rent Charge Act 1977 barred the creation of new rentcharges from 1977 onwards.

Old rentcharges can now be extinguished by making a lump sum payment under the Act. Any rentcharges that are still in existence post 2037 is to be extinguished.

How does conveyancing in South Hornchurch differ for new build properties?

Most buyers of new build or newly converted property in South Hornchurch approach us having been asked by the developer to exchange contracts and commit to the purchase even before the property is built. This is because builders in South Hornchurch tend to purchase the land, 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 conveyancing solicitors 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 Hornchurch or who has acted in the same development.

Due to the advice of my in-laws I had a survey completed on a house in South Hornchurch before appointing solicitors. I have been advised that there is a flying freehold overhang to the house. The surveyor advised that some lenders tend refuse to grant a mortgage on such a home.

It varies from the lender to lender. HSBC has different requirements from Birmingham Midshires. Should you wish to telephone us we can check with the relevant bank. If you lender is happy to lend one our lawyers can assist as they are accustomed to dealing with flying freeholds in South Hornchurch. Conveyancing may be slightly more expensive based on your lender's requirements.

I am attracted to a couple of apartments in South Hornchurch both have about 50 years remaining on the leases. Will this present a problem?

There are no two ways about it. A leasehold apartment in South Hornchurch is a deteriorating asset as a result of the shortening lease. The closer the lease gets to its expiry date, the more it adversely affects the value of the premises. For most buyers and banks, leases with less than eighty years become less and less attractive. On a more positive 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 a property 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 South Hornchurch conveyancing experts who will explain the options available to you during an initial telephone conversation free of charge. More often than not it is possible to negotiate informally with the freeholder to extend the lease. You may find he or she is happy to negotiate informally and willing to consider your offer straight off, without having to involve anyone else. This will save you time and money and it could help you reach a lower price on the lease. You need to ensure that any new 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.

I am the registered owner of a 2 bed flat in South Hornchurch, conveyancing was carried out 1995. Can you give me give me an indication of the likely cost of a lease extension? Similar flats in South Hornchurch with an extended lease are worth £165,000. The average or mid-range amount of ground rent is £45 invoiced every year. The lease finishes on 21st October 50

With just 50 years left to run we estimate the price of your lease extension to be between £36,100 and £41,800 plus legals.

The figure above a general guide to costs for renewing a lease, but we cannot give you the actual costs in the absence of detailed due diligence. You should not use this information in a Notice of Claim or as an informal offer. There are no doubt additional concerns that need to be considered and clearly you want to be as accurate as possible in your negotiations. Neither should you move forward based on this information without first seeking the advice of a professional.

When it comes to my conveyancing in South Hornchurch should I be charged VAT on the following: (1) Land reg fee on purchase (2) Pre - completion search fee (3) SDLT E submission on purchase (4) Bank TT fee

(1) Land reg fee on purchase - No (2) Pre - completion search fees -No, (such conveyancing searches are HMLR ones and means £4 and possibly £2 bankruptcy per name on your mortgage) (3) SDLT E submission on your purchase - There is no VAT on Stamp Duty. However if the firm is charging a stamp duty e-submission fee as part of their services - some South Hornchurch conveyancers do - that will incur VAT(4) Bank transfer fee - Yes it is for the 's time in submitting the funds this way.