This can be a common issue in the Conveyancing of Leasehold flats in Camden

Our knowledgeable Leasehold Conveyancers have acted on a number of ex-council Leasehold flats in Camden recently (particularly in locations such as Belsize Park, St. Pancras Way and advise that there is a well-known issue: that of Service Charge. When carrying out the Conveyancing on Leasehold flats our conveyancers who act in a Conveyancing transaction for the sale of a property or purchase of an ex-council Leasehold flat in Camden are increasingly coming across Service Charges on ex-council leasehold flats that can exceed £5000.00 per year and even be as much as £10,000.00.

The Decent Homes Standard Applied on Leasehold flats

The rise in Service Charges on ex-council Leasehold flats in Camden is largely because of government guidelines set down in 2000 when the then Labour government pledged to "ensure that all social housing meets set standards of decency by 2010. The Decent Homes regulations have meant that Local Authorities throughout the UK including Camden London Borough Council, have had to embark on a substantial programme of improvements to up grade their housing stock and leasehold flats.

Those people that have bought Leasehold flats in Council Blocks (mostly within the Right to Buy) are required under the terms of their leases to pay contributions not just to the costs of day-to-day maintenance and repair of the block (Service Charges) but additionally to the costs of major works and renewals of the structure of the building, which includes the services and windows. This could also include costs in improving the building.

Such is the condition of the Council Blocks in Belsize Park, St. Pancras Wayin which the Leasehold flats are situated (as a consequence of numerous years of neglect) that the works necessary to bring them up to the Decent Homes Standard are often extensive.

How Does this Effect Buyers in Conveyancing Transactions

When acting in a Conveyancing transaction for the sale or purchase of a ex-council Leasehold flat in Camden, our conveyancers are finding that the Seller has received notice of the works planned and the cost of such works up to a year in advance. This may well be the main reason they're selling. It is crucial for the Conveyancer to be particularly diligent when dealing with ex-council Leasehold flats in Camden as not all the works are done at the same time and there's often a programme of such works planned over a number of years, with an additional £2000-£3000 being added to the yearly Service Charges annually for each Leasehold flat within the block.

Our skilled Leasehold Conveyancers at iconvey advise that it is often the case that whenever they act for Buyers in a Conveyancing transaction for the purchase of ex-council Leasehold flats in Camden they discover that there are sizeable Service Charge Arrears in addition to notices of significant amounts of major works planned for future years with the risk of of increasing Service Charge bills in the years ahead

It is essential that when purchasing an ex-Council Leasehold flat in Camden that you employ a conveyancer that is familiar with the sale and purchase of ex-Council Leasehold flats in Camden such as iconvey. A Conveyancer who is experienced with the purchase of ex-Council Leaehold Flats will ensure that all Service Charge invoices received from the Council are paid off on or before the Completion of the Conveyancing transaction or that a significant sum of money is retained to cover any invoices which might be outstanding in respect of the Leasehold flat or for works that are planned and have not yet been completed on the leasehold flat.

Conveyancers that are experienced with Conveyancing transactions involving the sale and purchase of ex-Council Leasehold flats, such as our experienced Conveyancers at iconvey, will insist on seeing the Service Charge accounts for the last three years together with any notices received regarding planned works. From these our expert Conveyancers can look for trends and may be able to work out what further charges there may be in respect of the Leasehold flat over the following two years or so, and arrange for enough funds to be retained.