Our conveyancer has identified a defect with the lease for the property we are buying in Bury St Edmunds. The seller’s lawyers have put forward title insurance as a solution. We are happy with insurance and will pay for it. Our conveyancer says that he must check that the mortgage company is happy with this solution. Who is the client here, us or the mortgage company ?
The short answer to your last question is that, notwithstanding the risk of a conflict of interest, you and the lender are the client. Your lawyer must comply with the UK Finance Lenders’ Handbook requirements. The UK Finance Lenders’ Handbook conditions require your lawyer to disclose issues such as defects with the lease so that the mortgage company can be afforded the opportunity to check with their valuer as to the extent that the value of the property is affected. Should you refuse to allow your lawyer to make the appropriate notification then your conveyancing practitioner will have no choice but to discontinue acting for you.
I am the registered owner of a freehold residence in Bury St Edmunds yet invoiced for rent, why is this and what is this?
It is rare for properties in Bury St Edmunds and has limited impact for conveyancing in Bury St Edmunds 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 have existed for many centuries, but the Rent Charge Act 1977 barred the creation of new rentcharges post 1977.
Previous rentcharges can now be extinguished by making a one off payment under the Act. Any rentcharges that are still in existence in 2037 will be extinguished.
We're in Bury St Edmunds, First timers buying with a mortgage (lender is Aldermore , and our lawyer is on the Aldermore conveyancing panel). How long should the conveyancing process take?
The fact that your lawyer is on the Aldermore conveyancing panel is a help. It would almost certainly delay matters if they were not. However, no conveyancer should guarantee a timeframe for your conveyancing, due to third parties outside of your control such as delays caused by lenders,conveyancing search providers or by the other side’s solicitors. The time taken is often determined by the number of parties in a chain.
My cousin has suggested that I use his conveyancers in Bury St Edmunds. Do I follow his advice?
No doubt the ideal way to select a conveyancing lawyer is to get recommendations from friends or family who have actually experience in using the firm that you are contemplating using.
I work for a reputable estate agent office in Bury St Edmunds where we have witnessed a number of leasehold sales derailed due to short leases. I have received contradictory information from local Bury St Edmunds conveyancing firms. Could you clarify whether the vendor of a flat can commence the lease extension process for the purchaser on completion of the sale?
Provided that the seller has owned the lease for at least 2 years it is possible, to serve a Section 42 notice to kick-start the lease extension process and assign the benefit of the notice to the purchaser. This means that the proposed purchaser can avoid having to sit tight for 2 years to extend their lease. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed prior to, or at the same time as completion of the sale.
Alternatively, it may be possible to extend the lease informally by agreement with the landlord 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 buyer.
I purchased a split level flat in Bury St Edmunds, conveyancing was carried out October 2001. Can you let me have an estimate of the premium that my landlord can legally expect in return for granting a renewal of my lease? Comparable flats in Bury St Edmunds with an extended lease are worth £216,000. The average or mid-range amount of ground rent is £50 charged once a year. The lease ends on 21st October 2095
With just 70 years left to run we estimate the premium for your lease extension to range between £9,500 and £11,000 as well as legals.
The figure above a general guide to costs for renewing a lease, but we are not able to supply the actual costs without more detailed due diligence. Do not use this information in a Notice of Claim or as an informal offer. There may be other issues that need to be taken into account and clearly you want to be as accurate as possible in your negotiations. Please do not move forward based on this information before getting professional advice.
New build sellers have put forward a lawyer and I've obtained an estimate from them. It's almost £250 cheaper than my own Bury St Edmunds conveyancer. Should I use them?
Developers frequently have panels of property lawyers who are quick and who know the seller’s contract and lawyer. As many developers offer an incentive to select a preferred solicitor for this reason, any increased fees can be avoided and a builder will not put forward a conveyancing warehouse and run the risk of having the conveyancing delayed when they need an exchange within a tight deadline. A counter-argument for not agreeing to use the suggested solicitor is that they may be hesitant to fight for your interests at the risk of alienating the sellers. If you worry that this may be the case you should stick with your high street Bury St Edmunds property lawyer.