I purchased a freehold residence in Bishops Stortford but still charged rent, why is this and what is this?
It is rare for properties in Bishops Stortford and has limited impact for conveyancing in Bishops Stortford 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 date back many centuries, but the Rent Charge Act 1977 barred the creation of fresh rentcharges from 1977 onwards.
Previous rentcharges can now be extinguished by making a lump sum payment under the Act. Any rentcharges that are still in existence post 2037 is to be dispensed with completely.
How does conveyancing in Bishops Stortford differ for new build properties?
Most buyers of new build premises in Bishops Stortford come to us having been asked by the builder to exchange contracts and commit to the purchase even before the house is ready to move into. This is because builders in Bishops Stortford usually purchase the land, 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 conveyancers 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 Bishops Stortford or who has acted in the same development.
I have been on the look out for a leasehold apartment up to £245,000 and identified one close by in Bishops Stortford I like with open areas and station in the vicinity, the downside is that it's only got 49 years on the lease. There is not much else in Bishops Stortford for this price, so just wondered if I would be making a grave error acquiring a lease with such few years left?
If you require a mortgage the remaining unexpired lease term will be a potential deal breaker. Reduce the offer by the amount the lease extension will cost if not already taken into account. If the current owner has owned the property for at least 2 years you may request that they start the process of the extension and pass it to you. You can add 90 years to the existing lease term with a zero ground rent applied. You should speak to your conveyancing solicitor concerning this.
Am I right to be suspicious by brokers that I am dealing with are suggesting an internet conveyancing firm rather than a High Street Bishops Stortford conveyancing practice?
As with many service providers, often referrals from family and friends can be extremely useful or valuable. Yet there are numerous parties with a vested interest in a conveyancing transaction; estate agents, financial adviser and banks may suggest solicitors to use. Sometimes these conveyancers might be known to one of the organisations as being good in their field, but occasionally there might be a commercial relationship behind the endorsement. You have the discretion to select your own lawyer. However, bear in mind that most banks have an approved list of law firms you must use for the lender related work in your house move.
I am a negotiator for a reputable estate agency in Bishops Stortford where we have witnessed a number of flat sales derailed due to leases having less than 80 years remaining. I have been given conflicting advice from local Bishops Stortford conveyancing firms. Could you clarify whether the vendor of a flat can initiate the lease extension formalities for the buyer?
Provided that the seller has been the owner for at least 2 years it is possible, to serve a Section 42 notice to commence the lease extension process and assign the benefit of the notice to the purchaser. The benefit of this is that the proposed purchaser can avoid having to wait 2 years to extend their lease. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed before, or simultaneously with completion of the sale.
An alternative approach is to agree the lease extension with the freeholder either before or after the sale. If you are informally negotiating there are no rules and so you cannot insist on the landlord agreeing to grant an extension or transferring the benefit of an agreement to the purchaser.
Leasehold Conveyancing in Bishops Stortford - Examples of Questions you should consider before Purchasing
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Does the lease contain onerous restrictions? This question is helpful as a) areas could result in problems for the building as the common areas may begin to deteriorate if maintenance remain unpaid b) if the leaseholders have an issue with the running of the building you will wish to have full disclosure Are any of leasehold owners in dispute over their service charge payments?
The property lawyers undertaking our conveyancing in Bishops Stortford has forwarded documents to review that reveal that the land is unregistered with epitome documents. Surely all houses in Bishops Stortford are registered?
Although the vast majorities of properties in Bishops Stortford are now registered with HM Land Registry there are still some that remain unregistered. Any property in Bishops Stortford that has been purchased since the late 1980’s will have been registered at the Land Registry under the compulsory ‘first registration’ scheme. However, if a Bishops Stortford property has not changed hands in that time then it’s likely the old fashioned title deeds will be the only evidence of ownership.Plenty of Bishops Stortford conveyancing practitioners will be familiar with such matters but in the event that uncertainty exists the usual recommendation nowadays appears to be for the current owners to register it first and then deal with the disposal - this no doubt cause a significant delay.