Common problems and disputes in leasehold transactions

Major works bills can arise at any time depending on the condition of the building.

If information in the LPE1 was missing or incorrect, this could amount to a misrepresentation. If you suspect this has happened, you should speak to your conveyancer, who may be able to investigate.

If a breach of lease has not been resolved before completion, the landlord may require you to fix it.

Your conveyancer should check for outstanding breaches and ask the seller to resolve them before contracts are exchanged. Options may include obtaining retrospective consent, indemnity insurance, or deciding not to proceed with the purchase.

You may be liable for unpaid ground rent or service charges if they were demanded and not paid before completion.

Landlords can take enforcement action, including forfeiture, for unpaid sums. Your conveyancer should ensure that any arrears are cleared before you complete.

If service charges are estimated, you may receive a later demand covering a period before you owned the property. In these cases, your solicitor may negotiate a retention, where money is held back from the seller to cover their share.

Contributions to reserve or sinking funds are usually not refundable when a flat is sold. However, the lease should be checked to see whether it allows for any refund.

Administration fees must be reasonable and justified. You can ask the landlord to explain how the fee has been calculated and request a breakdown of costs.

If necessary, it may be possible to pay the fee to avoid delaying the sale and then challenge it at a tribunal afterwards.