I am nearing exchange of contracts for my apartment in Alfreton and the estate agent has just telephoned to say that the purchasers are swapping solicitor. The excuse is that the lender will only work with property lawyers on their conveyancing panel. On what basis would a major mortgage company only work with specific lawyers rather the firm that they want to select for their conveyancing in Alfreton ?
Banks have always had an approved set of law firms that can act for them, but in recent years big names such as Lloyds Banking Group, have reviewed and reduced their conveyancing panel– in some cases removing conveyancing firms who have represented them for over 25 years.
Banks point to the increase in fraud by way of justification for the pruning – criteria have been narrowed as a smaller panel is easier to oversee. Banks tend not to disclose how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society says it is being contacted daily by practices that have been removed from panels. Plenty of firms do not even realise they have been dropped until contacted by a borrower who has instructed them as might be the situation in your buyers' case. The buyers are unlikely to have any sway in the decision.
All was ready to complete my purchase in Alfreton next Monday. My conveyancer now wants me to supply her with proof of content and building insurance for the property as he says that he has to check this in his capacity as lawyer for the mortgage company. What does the insurance need to cover?
Any lawyer on acting for banks would need to check that the following risks are covered fire; lightning; aircraft; explosion; earthquake; storm; flood; escape of water or oil; riot; malicious damage; theft or attempted theft; falling trees and branches and aerials; subsidence; heave;landslip;collision;accidental damage to underground services;professional fees, demolition and site clearance costs; and public liability to anyone else. There are some other issues such as the level of excess that are set out in a lender’s Part 2 instructions. These requirements are not limited to conveyancing in Alfreton.
I'm buying my first flat in Alfreton with the aid of help to buy. The builders would not budge the price so I negotiated five thousand pounds worth of fixtures and fittings instead. The sale representative advised me not disclose to my conveyancer about the deal as it may affect my mortgage with the bank. Should I keep quiet?.
All lenders require a Disclosure of Incentives Form from the developer of any new build, converted or renovated property, It is available online from the Lenders’ Handbook page on the CML website. CML form is completed and handed to the lender's surveyor when the inspection is done.
Lenders have different policies on incentives. Some accept none at all, cash or physical, while others will accept cash incentives up to 5%.
Hard to understand why the representative of a builder would be suggesting you withold information from a solicitor when all this will be clearly visible on forms the builder has to supply to its solicitor, the buyer's solicitor and the surveyor.
Over the last few months I have been searching for a flat up to £195,000 and identified one near me in Alfreton I like with open areas and station nearby, the downside is that it only has 49 years on the lease. There is not much else in Alfreton for this price, so just wondered if I would be making a grave error buying a lease with such few years left?
Should you require a home loan the remaining unexpired lease term will be a potential deal breaker. Reduce the offer by the anticipated lease extension will cost if not already taken into account. If the existing proprietor has owned the property for a minimum of twenty four months you could ask them to start the process of the extension and then assign it to you. An additional ninety years can be extended on to the existing lease and have £0 ground rent by law. You should consult your conveyancing lawyer concerning this.
I was pointed in your direction by numerous property agents in Alfreton to get a quote from a conveyancer on your site. Is there a financial upside for Estate Agents to recommend your lawyers rather than another?
We refuse to offer any referral fee for sending work to this site. We thought it would be too underhand a fee as home movers will think, ‘How come the agent getting a kickback? Why aren’t I receiving any benefit too?’ So we decided to step away from that.
Can you offer any advice when it comes to finding a Alfreton conveyancing practice to carry out our lease extension conveyancing?
If you are instructing a property lawyer for lease extension works (regardless if they are a Alfreton conveyancing firm) it is imperative that they be familiar with the legislation and specialises in this area of conveyancing. We suggest that you speak with two or three firms including non Alfreton conveyancing practices before you instructing a firm. If the firm is ALEP accredited then that’s a bonus. The following questions could be helpful:
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How many lease extensions has the firm conducted in Alfreton in the last 12 months? What are the charges for lease extension conveyancing?
I own a ground floor flat in Alfreton, conveyancing formalities finalised half a dozen years ago. Can you work out an approximate cost of a lease extension? Comparable flats in Alfreton with a long lease are worth £179,000. The ground rent is £65 levied per year. The lease ceases on 21st October 2083
With 57 years remaining on your lease we estimate the premium for your lease extension to range between £26,600 and £30,800 as well as legals.
The suggested premium range above a general guide to costs for extending a lease, but we cannot give you a more accurate figure in the absence of comprehensive due diligence. You should not use this information in a Notice of Claim or as an informal offer. There may be additional issues that need to be considered and clearly you want to be as accurate as possible in your negotiations. Please do not move forward placing reliance on this information without first getting professional advice.