I am nearing exchange of contracts for my house in Cheam and the estate agent has just text me to warn that the buyers are changing their solicitor. The excuse is that the bank will only engage with solicitors on their conveyancing panel. Why would a leading lender only work with certain law firms rather the firm that they want to choose for their conveyancing in Cheam ?
Mortgage companies have always had an approved set of law firms that can represent them, but in recent years big names such as Nationwide, have considered and reduced their conveyancing panel– in some cases removing conveyancing firms who have represented them for many 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. No lender will say how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society says it is hearing daily from firms that have been removed from panels. Plenty of firms are unaware that they have been dropped until contacted by a borrower who has instructed them as might be the situation in your buyers' case. Your buyers are unlikely to have any sway in the decision.
I am the registered owner of a freehold property in Cheam but nevertheless charged rent, why is this and what is this?
It is rare for properties in Cheam and has limited impact for conveyancing in Cheam 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 fresh rentcharges post 1977.
Old rentcharges can now be redeemed by making a one off payment under the Act. Any rentcharges that are still in existence post 2037 will be extinguished.
We previously chose solicitors locally in Cheam on the Skipton solicitor approved list. They have just invoiced me an additional fee for dealing with the Skipton mortgage. Is this a supplemental conveyancing fee set by Skipton?
Provided it is contained in their Terms and Conditions or Quote then yes your conveyancer is entitled to levy a fee for this. This fee is not dictated by Skipton but by your Cheam property lawyer. Some firms on the Skipton panel will quote an ‘acting for lender’ fee and others do not.
We are getting the release of further monies on our mortgage from Nationwide as we want to conduct a loft conversion to our home in Cheam. Are we obliged to appoint a high street Cheam solicitor on the Nationwide conveyancing panel to handle the legals?
Nationwide do not ordinarily instruct firms on their conveyancing panel to handle such a matter. If they do require any legal work then you would need to ensure that such a lawyer was on the Nationwide list.
I am expecting a DIP from Yorkshire BS this week so we can work out what to offer on a property we like as otherwise we only have online calculators to go by (which aren't taking into account credit checks etc). Do Yorkshire BS recommend any Cheam solicitors on the Yorkshire BS conveyancing panel, or is it better to go independently?
You will need to appoint Cheam solicitors independently although you'll need to choose one on the Yorkshire BS conveyancing panel. The solicitor represents both you and Yorkshire BS through the process.
Will our solicitor be asking questions regarding flooding during the conveyancing in Cheam.
The risk of flooding is if increasing concern for conveyancers carrying out conveyancing in Cheam. There are those who acquire a house in Cheam, fully aware that at some time, it may be flooded. However, leaving to one side the physical damage, if a house is at risk of flooding, it may be difficult to obtain a mortgage, adequate building insurance, or sell the property. There are steps that can be taken as part of the conveyancing process to forewarn the purchaser.
Solicitors are not qualified to give advice on flood risk, but there are a numerous checks that may be carried out by the purchaser or by their solicitors which should give them a better understanding of the risks in Cheam. The standard property information forms given to a buyer’s conveyancer (where the Conveyancing Protocol is adopted) incorporates a usual question of the seller to determine whether the property has ever been flooded. In the event that the premises has been flooded in past and is not notified by the owner, then a buyer could bring a claim for damages as a result of such an incorrect answer. The purchaser’s conveyancers should also conduct an environmental report. This should disclose whether there is a recorded flood risk. If so, more detailed inquiries will need to be initiated.
I am buying a new build flat in Cheam. Conveyancing is daunting at the best of times but I have never purchased a new build flat before. What sort of enquires would be asked in new build legal work.
Here is a sample of a few leasehold new build questions that you should expect your new-build leasehold conveyancing in Cheam
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Will the freehold then be transferred for a nominal consideration (not exceeding £100) to the Management Company? Forfeiture - bankruptcy or liquidation must not apply under this provision. Please confirm the Lease plans are architect prepared. The Landlord must covenant to assume the management if the Management Company goes into liquidation or otherwise defaults in running the management scheme. Has the Lease plan been approved by the Land Registry and if not when will they be lodged for this purpose?
My wife and I purchased a leasehold flat in Cheam. Conveyancing and Barclays Direct mortgage organised. I have received a letter from someone claiming to own the reversionary interest in the property. Attached was a demand for arrears of ground rent dating back to 1994. The conveyancing solicitor in Cheam who previously acted has long since retired. What should I do?
First contact HMLR to make sure that the individual claiming to own the freehold is in fact the new freeholder. It is not necessary to incur the fees of a Cheam conveyancing solicitor to do this as it can be done on-line for £3. You should note that regardless, even if this is the legitimate freeholder, under the Limitation Act 1980 the limitation period for recovery of ground rent is six years.
Following months of correspondence we cannot agree with our landlord on how much the lease extension should cost for our flat in Cheam. Can we issue an application to the Residential Property Tribunal Service?
Absolutely. We are happy to put you in touch with a Cheam conveyancing firm who can help.
An example of a Lease Extension matter before the tribunal for a Cheam flat is 33 The Maisonettes Alberta Avenue in June 2014. the Tribunal decided that the premium payable for the grant of a new lease be the sum of £20,680 (Twenty Thousand six hundred and eighty pounds). This case related to 1 flat. The unexpired lease term was 60.43 years.