Leasehold Sale

Your solicitor is an independent professional legal adviser acting solely on your behalf and, when contemplating the sale of your home, which is probably your major asset, it is advisable to seek preliminary advice from your Solicitor before proceeding with the sale.

• Preliminary advice is free and readily available and will include answering your queries such as:-
  
  1. Should I advertise the sale privately? instruct an estate agent on a sole agency basis only? how many firms of estate agents can be instructed?
  2. Will an early redemption of my mortgage trigger a penalty payment to my mortgage lender?
  3. What factors should be taken into account when determining the sale price?
  4. What constitutes fixtures and fittings, what items are automatically included in the sale price and what items can be taken?
• On what terms should an estate agent be instructed does their fee include all costs incurred by them or are additional costs likely to cover advertising?
• The next step is to place your property on the open market and in the meantime we can obtain the title deeds, including a copy of your lease and any supplemental documents and prepare a draft contract in readiness for the sale.
• Once you have accepted an offer from a likely buyer we are given the buyer’s solicitors’ details by the estate agents or yourself if you are selling the property privately.
• A draft contract is submitted to the buyer’s solicitors for approval with a copy of your title. Additional enquiries will need to be raised of the managing agents relating to any planned major works, services charge account, sinking fund, insurance etc. A fee for replying to those enquiries maybe requested by the landlord or managing agent. The lease may also require the landlord’s consent to assignment by way of a document called a licence to assign. There is usually a separate fee charged for this.
• The buyer’s solicitors submit their enquiries; we reply to as many enquiries as possible and send the document to you for verification and completion of any outstanding queries.
• Once replies to enquiries are returned to the buyer’s solicitors we request the return of the draft contract approved with confirmation that the buyer is now in a position to exchange.
• The buyer will not be in a position to exchange unless his/her solicitor is satisfied with the pre-contract documentation submitted by us and that they have received satisfactory search results against the Property and a letter of offer/advance from his or her mortgage lender.
• We then obtain your signature to the contract. If you have a related purchase we liaise with your seller’s solicitors to agree a contemporaneous exchange of contracts and completion dates.
• On exchange of contracts a 10% deposit is paid by the buyer to us as stakeholder or agent. If we can arrange to hold these monies as agent, they can be utilised towards the 10% deposit on your related purchase or can be handed over to you immediately. If held as stakeholder the monies are placed on deposit with any interest accruing to you and paid on completion.
• On exchange a completion date is agreed. Completion is the date that you give vacant possession and receive the balance of the purchase money. Completion is normally 10-14 days after exchange but the date can be brought forward or put back depending on the wishes of the parties.
• After exchange we draw up an account setting out your financial position to include your mortgage redemption sum, estate agent’s fees, legal fees, possibly apportionment of water rates, and all or any other expenses/fees that have to be taken into account.
• Prior to completion it is necessary for you to sign a final document called the transfer. It is this document that deals with transferring legal title from you to your buyer.
• On completion you should not hand over the keys of the property to the buyer until you have telephoned us to confirm that we have received the balance of the purchase monies. Alternatively, the keys can be left with the estate agents and we authorise their release once completion has taken place.
• On completion we redeem your mortgage and it is usual for the estate agents fees and our fees to be settled, if approved.
• Finally, on completion we remit to you the net proceeds of sale or utilise the proceeds towards your related purchase and finalise the transaction by sending to the buyer’s solicitors the title deeds of your property together with written evidence of redemption of your mortgage.
• We will also need to serve notice of your purchase on the Landlord, along with a registration fee.

• If it is a condition of the lease that the seller is to ensure that the buyer enters into a deed of covenant with the landlord/managing agent or management company. (In this way the landlord or management company has a direct contract with the buyer and prior notification of the new lessee.)
• If you need the rent returning under an existing rent deposit deed
• A lease may require that the sale of the flat cannot take place without the prior written consent of the landlord. This document is called a licence to assign or a formal letter of consent.
• If there is a service charge dispute
• If a retention is being sought
• Compliance with restrictions on the title
• Sale of a share in the freehold
• S20 notices detailing major works
• Redemption of a existing finance secured against the property
• Sale of part