I purchased a freehold premises in Cornwall but still charged rent, why is this and what is this?

It’s unusual for properties in Cornwall and has limited impact for conveyancing in Cornwall but some freehold properties in England (particularly common in North West England) pay an annual sum known as a Chief Rent or a Rentcharge to a third party who has no other legal interest in the land.

Rentcharge payments are usually between £2.00 and £5.00 per year. Rentcharges have existed for many centuries, but the Rent Charge Act 1977 barred the establishment of new rentcharges post 1977.

Old rentcharges can now be extinguished by making a one off payment under the Act. Any rentcharges that are still in existence in 2037 is to be extinguished.

I am looking for a leasehold apartment up to £235,500 and identified one round the corner in Cornwall I like with open areas and station in the vicinity, however it only has 49 remaining years left on the lease. I can't really find anything else in Cornwall suitable, so just wondered if I would be making a grave error acquiring a short lease?

Should you need a home loan that many years will likely be an issue. Reduce the price by the amount the lease extension will cost if not already taken into account. If the existing owner has owned the premises for a minimum of 2 years you may ask them to commence the lease extension formalities and pass it to you. An additional ninety years can be extended on to the current lease and have £0 ground rent by law. You should consult your conveyancing lawyer about this.

How does the Landlord & Tenant Act 1954 affect my commercial premises in Cornwall and how can you help?

The 1954 Act gives protection to commercial leaseholders, granting the legal entitlement to apply to court for a new tenancy and remain in occupation when the lease comes to an end. There are limited grounds where a landlord can refuse a lease renewal and the rules are involved. We are happy to direct you to commercial conveyancing practices who use the act to your advantage and handle your commercial conveyancing in Cornwall

Am I better off to instruct a Cornwall conveyancing practitioner who is local to the property I am buying? An old friend can deal with the legal work but his firm is located a couple of hundredmiles away.

The benefit of a local Cornwall conveyancing firm is that you can pop in to execute paperwork, deliver your ID and apply pressure on them where appropriate. They will also have local knowledge which is a benefit. However it's more important to get someone that will pull out all the stops for you. If if people you trust instructed your friend and on the whole were happy that must trump using an unfamiliar Cornwall conveyancing solicitor solely due to them being round the corner.

I am looking at a couple of flats in Cornwall which have approximately forty five years remaining on the leases. should I be concerned?

There are plenty of short leases in Cornwall. The lease is a right to use the premises for a prescribed time frame. As the lease shortens the saleability of the lease reduces and results in it becoming more expensive to acquire a lease extension. For this reason it is advisable to increase the term of the lease. It is often difficult to sell a property with a short lease because mortgage companies less inclined to grant a loan on properties of this type. Lease extension can be a difficult process. We recommend you seek professional help from a solicitor and surveyor with experience in this area.

Cornwall Leasehold Conveyancing - Examples of Questions you should consider Prior to buying

You will want to find out as much as possible regarding the company managing the block as they will affect your use and enjoyment of the property. Being a leasehold owner you will be at the mercy of the managing agents from a financial perspective and when it comes to practical issues like the upkeep of the common parts. Don't be shy to ask prospective neighbours what they think of them. Finally, be sure you understand the dates that the maintenance fees are due to the relevant party and precisely what it includes. Make sure you enquire if there is anything that is prohibited in the lease. By way of example it is reasonably common in Cornwall leases that pets are not allowed in certain buildings in Cornwall. If you like the propertyin Cornwall yet your cat can’t live with you then you have a very hard compromise. What is the maintenance charge and ground rent on the apartment?