Property 14

Question 1

Freehold v Leasehold: Pre-Contract Package

Answer 1

Freehold* Draft contract* Property Information Form * Official copies of title register (if registered) or epitome of title (if unregistered) LeaseholdAs for freehold, plus:* Leasehold Property Information Form* Copy of draft lease or existing lease* Possibly a copy of any head lease or landlord’s title

Question 2

Freehold v Leasehold: Searches

Answer 2

Freehold* Local search* Drainage* Environmental* Commons registration* Chancel repair LeaseholdAs for freehold plus:* If landlord is a company, carry out acompany search

Question 3

Freehold v Leasehold: Enquiries

Answer 3

Freehold* Standard form pre-contract enquiries about boundaries, third party rights, disputes, notices, and so on * Enquiries and review of seller’s title LeaseholdAs for freehold plus:* Leasehold enquiries regarding three years’ service charge accounts, rent, insurance* Review of leasehold title* Review of landlord’s title* Review of date of lease in relation to continuing liability for covenants * Consider liability on assignment

Question 4

Freehold v Leasehold: Draft Contract

Answer 4

Freehold* Usual form of Contract Incorporting Standard Conditions of Sale and any other special conditionsLeaseholdAs for freehold plus:* Draft Lease may be attached to contract* Relevant Standard Conditions are: apportionments, existing leases, new leases* Consent to assignment of lease PLUS:* Buyer’s solicitor to review draft lease existing lease to ensure covenants are acceptable and not too onerous* May need to review / prepare licence to assign* Stock transfer form if seller owns share of management company

Question 5

Freehold v Leasehold: Exchange

Answer 5

Freehold* Law Society’s Formulae for Exchange of Contracts LeaseholdAs for freehold plus: * If grant of a new lease, once exchanged, lease will be engrossed and issued for signature as original and counterpart

Question 6

Freehold v Leasehold: Pre-Completion

Answer 6

Freehold* Usual Land Charges Department and/or Land Registry priority searches.* Prepare transfer deed * Check Completion Information and Undertakings form * Prepare completion statementLeaseholdAs for freehold plus: * Obtain landlord’s consent (if required) * Ready engrossed lease ready for signature if granting new lease * Prepare detailed completion statement including apportionments of rent service charge and any other sums due

Question 7

Freehold v Leasehold: Completion

Answer 7

Freehold* Transfer or receive funds * Date transfer deed * Send or receive documents of title LeaseholdAs for freehold plus: * Complete licence to assign (if required) * Complete and date lease and counterpart or assignment of existing lease

Question 8

Freehold v Leasehold: Post-completion

Answer 8

Freehold* Pay estate agents * Submit SDLT return * Register transfer and mortgage, if any, at HMLRLeaseholdAs for freehold plus: * Prepare notice of assignment to serve on landlord, if assignment of lease * Prepare notice of charge to serve on landlord, if buyer has mortgage * Send stock transfer form (if applicable) to landlord/management company to obtain new certificate for buyer