The process of completion of leasehold is the same as completion of freehold transaction. Here are a few things that should be taken care of during completion.
Documents to be handed over upon completion
The seller will have to hand over the following documents upon completion;
b) The transfer deed or the deed of assignment as is the case
c) The landlord’s license to assign
d) The marked abstract or other evidence of superior titles in accordance with the contract
e) The evidence of discharge of the seller’s mortgage
f) Copies of notices served by the seller and his predecessors as per the covenant in the lease that requires the landlord to be notified of any disposition
g) Insurance policy (or a copy of it if insurance is paid for by the landlord), along with the receipt for payment of premium, and details of payment of next premium.
h) Rent receipts and receipts for other outgoings
i) Share certificates for the management company
Items to be handed over to the buyer
The buyer should hand to the seller the following items that are considered for transaction;
a) Money that is due as per the completion date
b) The license to assign that is executed
c) A release of deposit
As per Section 45(2) of the LPA 1925 when receipt for the last rent due is produced, the buyer must assume that the rent has been paid and all covenants have been performed under superior leases. This is applicable unless something to the contrary appears. The buyer’s conveyancing solicitor should also examine the receipts on completion and also check if all other payments are made.
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