Query about reading through contract (leasehold property)

LondonS30

Hello all,

FTB here. I couldn't really find the answer to this easily elsewhere and it might be a silly question

I am hoping to exchange this week to complete by end of the month. My solicitor was meant to send me the contract before the weekend but he hasn't yet.. (He also said this 2-weeks ago).

When I receive this how long does it take to go through? And is it likely that anything major issues will crop up if this has been checked by the solicitor? My concern is that something random might arise for whatever reason and they will be pushing to exchange. I want to have enough time to understand the terms etc. It is a leasehold maisonette ground floor. The freeholder owns both top and bottom flats and is an individual.

Thanks in advance.. Likely just FTB nerves!

anselld

The contract is a proforma, normally ...
https://www.lawsociety.org.uk/support-services/documents/standard-conditions-of-sale-5th-edition/

Any variations or clarifications will have been agreed by your Solicitor through "enquiries".

So there is very little you can do at this stage except trust that your Solicitor has done their job properly. They should really talk you through any significant issues at the point of signing contracts.

Tom99

I think it's the lease you should be reading. Have you been sent a copy and has your solicitor sent a report on title which should highlight the main terms of the lease.
But don't rely on your solicitor to cover everything, read the lease through. The main things to look out for are the expiry date, ground rent and the ground rent reviews, who is responsible for repairing the different parts of the property, what does the service charge say you can be charged for, is there a sinking fund, what do you need permission to do etc.

LondonS30

Tom99 wrote: »

I think it's the lease you should be reading. Have you been sent a copy and has your solicitor sent a report on title which should highlight the main terms of the lease.
But don't rely on your solicitor to cover everything, read the lease through. The main things to look out for are the expiry date, ground rent and the ground rent reviews, who is responsible for repairing the different parts of the property, what does the service charge say you can be charged for, is there a sinking fund, what do you need permission to do etc.

Thank you! Apologies yes I think I am referring to the LEASE
My solicitor advised that he is 'preparing the report' which seems to be taking a while and I have not received this yet. I haven't received the formal lease details other than what I have enquired about.

That is exactly the information I am after. I just don't want to be hurried when reading through the lease if I only receive this right before I am supposed to exchange contracts.
The building survey showed up some issues regarding the upper maisonette (has a long term tenant so the freeholder owns both the leasehold and freehold for the upper maisonette) which although are in the top of the building obviously impact on mine... The managing agent is apparently looking into this, but I really need clarification on who is responsible for exactly what.

I will call my solicitor tomorrow to ask for the lease/ report again..any other tips prior to exchanging??

Slithery

LondonS30 wrote: »

I will call my solicitor tomorrow to ask for the lease/ report again..any other tips prior to exchanging??

Your solicitor will only give you a copy of the lease to discuss with you when they've finished preparing a report. Ringing them up won't speed up the process - in fact it will do the opposite by taking time out of their day answering unnecessary phone calls.

You can 'hope' to exchange at any time you want but surely it would be more sensible to let your solicitor do the job you're paying them for before committing to buy the property?

Tom99

I forgot to mention the lease plan. Does the plan show what you think you are buying, do you have rights over any common part, is any garden you think is yours shown on the plan?

LondonS30

I have just received a stack of documents in the post from my solicitor

Turns out the service charge isn't actually a service charge but is the buildings insurance only!! And the management company is Pier management which I have since googled and can only find horrific things about!

There are a few repairs required (which came to light from the survey) such as cleaning and repair of gutters, waste pipe serving upper maisonette broken. My solicitor advised this would be the responsibility of the "upper maisonette" - this is tenanted so the freeholder is responsible. As there is no service charge, the managing agent would bill the leaseholders "as and when"

I am panicking as I worry that I will have to pay to get some of this fixed if the managing agent then produces a big bill after I have exchanged ...and I have just read lots of horror stories about pier

I love this flat and have already spent over £1000 till now. Is this terrible management agent thing something to worry about?

Thanks

eddddy

LondonS30 wrote: »

My solicitor advised this would be the responsibility of the "upper maisonette" - this is tenanted so the freeholder is responsible. As there is no service charge, the managing agent would bill the leaseholders "as and when"

You sound a bit confused.

If the lease says the repairs are the responsibility of the "upper maisonette", then the leaseholder of the upper maisonette has to pay for them - and you almost certainly won't have to contribute. (The fact that the upper maisonette is tenanted is irrelevant.)

But if the lease says the repairs are the responsibility of the freeholder, then you'd probably have to pay a share.

LondonS30

Yes perhaps I'm just confusing myself more

The lease is divided for the upper and lower maisonette. At the end of each paragraph (for upper and lower) it says "and in each case together with all service media and landlords fixtures and fittings in or upon." Service media is the gutters, waste pipes cables etc etc

G_M

LondonS30 wrote: »

Yes perhaps I'm just confusing myself more

The lease is divided for the upper and lower maisonette. At the end of each paragraph (for upper and lower) it says "and in each case together with all service media and landlords fixtures and fittings in or upon." Service media is the gutters, waste pipes cables etc etc

You need to quote in full the relevant section of your lease regarding repairs and maintenance.

LondonS30

It's really not too clear, or I just cannot think straight. The original lease if from late 1980s and then extended and varied following that. But the subsequent changes refer to the original lease details for the covenants.

The demised premises = lower maisonette of the building. Other maisonette = upper maisonette

"To keep the whole of the demised premises in good and substantial repair and condition in particular so as to support shelter and protect the other maisonette"

"To keep the exterior of the demised premises in good decorative condition"

There is then another section (provisos and agreements)
"If during the term any dispute shall arise between the lessee and lessor or the owner or occupier of the other maisonette relating to the maintenance of repair of any part of the building or any service media or the proportions in which the cost of such maintenance or repair are to be borne any such disputes shall be referred to a independent surveyor to be appointed at the request of either party.."