My fiance and I are hoping to acquire a property in Berkshire and are in fact using a Berkshire conveyancing practice. Within the last couple of days our conveyancer has forwarded the sale agreement to be signed with a detailed report in anticipation of exchanging contracts shortly. Coventry Building Society have this morning contacted us to advise us that they have now hit a problem as our Berkshire conveyancer is not on their approved list of lawyers. Please explain?
When purchasing a property with mortgage finance it is standard for the purchasers' solicitors to also act for the purchaser's lender. In order to act for a bank or building society a law firm has to be on that lender's conveyancing panel. An application has to be made by the law firm to the lender to become a member of the lender's panel and there are increasingly strict criteria which the firm has to satisfy and indeed some lenders now require their panel members to be part of the Law Society’s Conveyancing Accreditation Scheme. Your solicitor should contact your bank and see if they can apply for membership of their conveyancing panel, but if that is not viable they will instruct their own solicitors to act. You don't have to instruct a firm on the lender’s conveyancing panel and you may continue to use your own Berkshire solicitors, in which case it will likely add costs, and it will likely delay the transaction as you have another set of people involved.
It is 10 years ago since I purchased my house in Berkshire. Conveyancing lawyers have now been instructed on the sale but I am unable to find my title deeds. Is this a problem?
Don’t worry too much. First the deeds may be retained by the mortgage company or they may be in the possession of the lawyers who oversaw your purchase. Secondly in all probability the title will be recorded at the land registry and you will be able to prove you are the registered owner by your conveyancing lawyers procuring current official copies of the land registers. Nearly all conveyancing in Berkshire involves registered property but in the rare situation where your property is unregistered it is more problematic but is not insurmountable.
I happen to be the single recipient of my late father’s will with all property in now in my sole name, including the my former home in Berkshire. Conveyancing formalities meant that the Land Registry date was in January. I plan to dispose of the house. I do know about the Mortgage Lenders six month 'rule', which means that my proprietorship will be considered the same way as though I had purchased the house in January. Will no one buy the property for half a year?
The Council of Mortgage Lenders’ handbook obliges conveyancers to: "report to us immediately if the owner or registered proprietor has been registered for less than six months." By the strict wording you might be impacted by that. How sensible a view lenders take of it, depend on the bank as this provision chiefly exists to pick up on subsales or the quick reselling of property.
We have agreed to purchase a house in Berkshire. A rare aspect is that the roof has a solar panel. Kent Reliance have issued a mortgage offer so presumably this is not a concern to them. Why is my solicitor raising questions about the panel?
Given that you are obtaining a mortgage with Kent Reliance your lawyer must check the conveyancing instructions outlined in Part 2 of UK Finance Lenders’ Handbook for Kent Reliance. The CML Handbook stipulates minimum specifications for solar panel roof-space leases, and conveyancing practitioners are required to report to Kent Reliance where a lease fails to comply with these requirements. The specifications relate to the installation of panels on properties nationwide and is not isolated to Berkshire.
I am expecting a DIP from Nottingham this week so we know how much we could potentially offer as otherwise we only have online calculators to go by (which aren't taking into account credit checks etc). Do Nottingham recommend any Berkshire solicitors on the Nottingham conveyancing panel, or is it better to go independently?
You will need to appoint Berkshire solicitors independently although you'll need to choose one on the Nottingham conveyancing panel. The solicitor represents both you and Nottingham through the process.
How does conveyancing in Berkshire differ for new build properties?
Most buyers of new build residence in Berkshire come to us having been asked by the builder to sign contracts and commit to the purchase even before the property is completed. This is because builders in Berkshire typically buy the real estate, plan the estate and want to get the plots sold off as they are building the properties. Buyers, therefore, will have to exchange contracts without actually seeing the house they are buying. To reduce the chances of losing the property, buyers should instruct property lawyers as soon as the property is reserved and mortgage applications should be submitted quickly. Due to the fact that it could be several months and even years between exchange of contracts and completion, the mortgage offer may need to be extended. It would be wise to use a lawyer who specialises in new build conveyancing especially if they are used to new build conveyancing in Berkshire or who has acted in the same development.
I have been on the look out for a ground for flat up to £305k and identified one close by in Berkshire I like with open areas and station in the vicinity, however it's only got 52 years unexpired on the lease. There is not much else in Berkshire suitable, so just wondered if I would be making a mistake purchasing a lease with such few years left?
If you require a home loan the remaining unexpired lease term may be problematic. Discount the offer by the expected lease extension will cost if not already taken into account. If the current owner has owned the property for at least twenty four months you could ask them to commence the lease extension formalities and pass 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 solicitor regarding this matter.
In relation to leasehold conveyancing in Berkshire what are the most frequent lease defects?
There is nothing unique about leasehold conveyancing in Berkshire. Most leases are unique and drafting errors can sometimes mean that certain clauses are erroneous. For example, if your lease is missing any of the following, it could be defective:
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Maintenance charge proportions which don’t add up to the correct percentage
You will encounter a problem when selling your property if you have a defective lease primarily because it impacts on the ability to obtain a mortgage on the property. National Westminster Bank, Barnsley Building Society, and Platform Home Loans Ltd all have express conveyancing instructions when it comes to what is expected in a lease. Where a lender has been advised by their lawyers that the lease is problematic they may refuse to provide security, obliging the purchaser to withdraw.
I bought a split level flat in Berkshire, conveyancing having been completed half a dozen years ago. Can you let me have an estimated range of the fair premium for a lease extension? Equivalent properties in Berkshire with an extended lease are worth £185,000. The average or mid-range amount of ground rent is £65 invoiced annually. The lease comes to an end on 21st October 2086
With only 60 years unexpired we estimate the premium for your lease extension to span between £20,000 and £23,000 as well as legals.
The suggested premium range that we have given is a general guide to costs for renewing a lease, but we cannot give you a more accurate figure in the absence of detailed due diligence. You should not use this information in a Notice of Claim or as an informal offer. There are no doubt additional issues that need to be considered and you obviously want to be as accurate as possible in your negotiations. Please do not move forward placing reliance on this information without first seeking the advice of a professional.