Why is leasehold purchase conveyancing in Canary Wharf is more expensive?

In summary, leasehold conveyancing in Canary Wharf and elsewhere usually necessitates more hours of investigation compared to freehold transactions. This includes reviewing the lease, liaising with the landlord about the service of required notices, procuring current service charge and management information, obtaining the freeholder’s consents and reviewing management accounts. The obligations on both the landlord and the tenant in the lease need to be studied by the buyer’s conveyancing team and read from beginning to end – no matter how many different proprietor have owned the lease since it was first entered into.

I have a terraced Georgian house in Canary Wharf. Conveyancing solicitor represented me and Nationwide Building Society. I did a free Land Registry search last week and there are two entries: one for freehold, another for leasehold with the matching property. I'd like to know for sure, how can I find out??

You need to review the Freehold register you have again and check the Charges Register as there may be mention of a lease. The best way to be sure that you are also the registered proprietor of the leasehold and freehold title as well is to check (£3). It is not completely unheard of in Canary Wharf and other areas of the country and poses no real issues for owners other than when they buy they have to account for both freehold and leasehold interests when dealing with buyers. You can also enquire as to the situation with your conveyancing practitioner who conducted the conveyancing.

How does conveyancing in Canary Wharf differ for new build properties?

Most buyers of new build residence in Canary Wharf contact us having been asked by the builder to sign contracts and commit to the purchase even before the house is finished. This is because new home sellers in Canary Wharf usually acquire the real estate, 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 Canary Wharf or who has acted in the same development.

I decided to have a survey carried out on a house in Canary Wharf in advance of instructing conveyancers. I have been told that there is a flying freehold aspect to the property. The surveyor advised that some banks will not issue a mortgage on this type of premises.

It depends who your proposed lender is. HSBC has different requirements from Nationwide. If you e-mail us we can check with the appropriate mortgage company. If you lender is happy to lend one our lawyers can assist as they are accustomed to dealing with flying freeholds in Canary Wharf. Conveyancing can be more complicated and therefore you should check with your conveyancing solicitor in Canary Wharf to see if the conveyancing will be more expensive.

I am hoping to put an offer on a small detached house that appears to tick a lot of boxes, at a reasonable figure which is making it more attractive. I have since been informed that the title is leasehold rather than freehold. I would have thought that there are particular concerns purchasing a house with a leasehold title in Canary Wharf. Conveyancing advisers have not yet been instructed. Will my lawyers set out the risks of buying a leasehold house in Canary Wharf ?

The majority of houses in Canary Wharf are freehold and not leasehold. This is one of the situations where having a local conveyancer used to dealing with such properties who can help the conveyancing process. it is apparent that you are buying in Canary Wharf so you should seriously consider looking for a Canary Wharf conveyancing practitioner and be sure that they have experience in advising on leasehold houses. First you will need to check the number of years remaining. As a leaseholder you will not be at liberty to do whatever you want with the house. The lease will likely included provisions such as requiring the landlord’sconsent to carry out changes to the property. It may be necessary to pay a contribution towards the maintenance of the estate where the property is part of an estate. Your lawyer should appraise you on the various issues.