I am in the process of selling my house in Chelsea and the estate agent has just called to say that the buyers are switching solicitor. The reason given is that the lender will only engage with property lawyers on their conveyancing panel. On what basis would a leading lender only deal with certain law firms rather the firm that they want to select to handle their conveyancing in Chelsea ?
Mortgage companies have always had an approved set of law firms they are content to work with, but in the last few years big names such as HSBC, have considered and reduced their conveyancing panel– in some cases removing conveyancing firms who have represented them for decades.
Lenders blame a rise in fraud by way of justification for the pruning – criteria have been tightened as a smaller panel is easier to maintain. No lender will say how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society claims that it is hearing daily from firms 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. Your purchasers are not going to have any impact on this.
Our conveyancer has uncovered a a legal deficiency with the lease for the flat we are buying in Chelsea. The other side have put forward title insurance as a solution. We are content with insurance and will cover the costs. Our lawyer has advised that he must check that the mortgage company is willing to move forward with this solution. Are we the client or is the bank?
The short answer to your last question is that, notwithstanding the potential for a conflict of interest, you and the mortgage company are the client. Your solicitor must comply with the UK Finance Lenders’ Handbook provisions. The UK Finance Lenders’ Handbook conditions require your lawyer to disclose issues such as defects with the lease so that the bank 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 conveyancer will have no choice but to discontinue acting for you.
We are downsizing from our home in Chelsea and the buyers lawyers are claiming that there is a risk of it being built on contaminated land. A high street Chelsea lawyer would know that there is no such problem. It does beg the question why the buyers used a nationwide conveyancing firm rather than a conveyancing solicitor in Chelsea. Having lived in Chelsea for three years we know that this is a non issue. Is it a good idea to contact our local Authority to get confirmation need.
It sounds as though you may have a conveyancing lawyer already. What do they say? You need to enquire of your lawyer before you do anything. It is very possible that once the local authority has been informed of a potential issue it cannot be insured against (a bit like being diagnosed with a serious illness and then taking out life insurance to cover that same sickness)
Are there restrictive covenants that are commonly picked up as part of conveyancing in Chelsea?
Restrictive covenants can be picked up when reviewing land registry title as part of the process of conveyancing in Chelsea. An 1874 stipulation that was seen was ‘The houses to be erected on the estate are each to be of a uniform elevation in accordance with the drawings to be prepared or approved by the vendor’s surveyor…’
I was recommended by numerous selling agents in Chelsea to choose a solicitor using your seach tool. Is there a financial inducement for Estate Agents to promote your lawyers ahead of another?
We refuse to give any referral fee for sending work to this site. We thought it would be too underhand a fee because a client could think, ‘Why is the agent getting a kickback? Why aren’t I getting any benefit too?’ So we decided to step away from that.
All being well we will complete our sale of a £300,000 garden flat in Chelsea on Wednesday in a week. The landlords agents has quoted £348 for Landlord’s certificate, building insurance schedule and 3 years service charge statements. Is it legal for a freeholder to charge exorbitant fees for a flat conveyance in Chelsea?
Chelsea conveyancing on leasehold apartments usually involves the purchaser’s lawyer sending questions for the landlord to address. Although the landlord is not legally bound to address such questions the majority will be willing to assist. They may levy a reasonable charge for responding to enquiries or supplying documentation. There is no set fee. The average fee for the paperwork that you are referring to is over three hundred pounds, in some situations it is above £800. The administration charge invoiced by the landlord must be sent together with a summary of entitlements and obligations in respect of administration fees, without which the charge is not strictly payable. Reality however dictates that you have little option but to pay whatever is requested of you should you wish to exchange contracts with the buyer.
I inherited a two-bedroom flat in Chelsea. Given that I can not reach agreement with the landlord, can the Leasehold valuation Tribunal make a decision on the premium due for the purchase of the freehold?
You certainly can. We can put you in touch with a Chelsea conveyancing firm who can help.
An example of a Lease Extension matter before the tribunal for a Chelsea property is 150A Albert Palace Mansions Lurline Gardens in July 2013. The Tribunal determined that the premium payable for the new lease of the subject property was £42,069 This case affected 1 flat. The unexpired residue of the current lease was 57.06 years.