I am five weeks into the sale of my apartment in Chelsea and the EA has just text me to advise that the purchasers are changing their conveyancer. The reason given is that the mortgage company will only work with property lawyers on their conveyancing panel. Why would a leading lender only work with certain solicitors rather the firm that they want to select to handle their conveyancing in Chelsea ?
Lenders have always had an approved set of law firms they are content to work with, but in recent years big names such as Santander, have reviewed and reduced their conveyancing panel– in some cases removing conveyancing firms who have acted for them for more than 15 years.
Mortgage companies point to the increase in fraud as the reason for the reduction – criteria have been tightened as a smaller panel is easier to keep an eye on. 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. The buyers are not going to have any impact on this.
My wife and I have lately acquired a house in Chelsea. We have since encountered a number of problems with the house which we believe were missed in the conveyancing searches. Is there anything we can do? Can you clarify the nature of searches that needed to have been conducted for conveyancing in Chelsea?
It is not clear from the question as what problems have arisen and if they are specific to conveyancing in Chelsea. Conveyancing searches and due diligence initiated during the buying process are supposed to help avoid problems. As part of the legal transfer of property, a property owner answers a form referred to as a SPIF. If the information proves to be inaccurate, you may have a misrepresentation claim against the vendor for any losses that you have suffered. The survey should have identified any problems with the structure of the property. Assuming a detailed survey was carried out and the issues were not identified, you may have a claim against the surveyor. However, if you did not have a full survey, you may be responsible for fixing any defects that have now been noted. We would always encourage buyers to take every possible step to ensure they are completely aware of the condition of a property before purchase regardless of whether they are buying in Chelsea.
Why do I have to pay up front for conveyancing in Chelsea?
If you are buying a property in Chelsea your solicitor will ask you place them with funds to cover the the cost of the conveyancing searches. This will be the total of the cost of the conveyancing searches. If any deposit is as part of the total price then this should be required immediately in advance of exchange of contracts. The closing balance that is due should be sent to your lawyer a couple of days prior to the completion date.
Will my lawyer be asking questions regarding flooding during the conveyancing in Chelsea.
Flooding is a growing risk for lawyers carrying out conveyancing in Chelsea. There are those who purchase a house in Chelsea, fully aware that at some time, it may suffer from flooding. However, aside from the physical damage, where a property is at risk of flooding, it may be difficult to get a mortgage, adequate insurance cover, or sell the premises. There are steps that can be taken as part of the conveyancing process to forewarn the purchaser.
Solicitors are not best placed to offer advice on flood risk, but there are a numerous searches that can be undertaken by the purchaser or on a buyer’s behalf which can figure out the risks in Chelsea. The conventional set of information supplied to a buyer’s conveyancer (where the Conveyancing Protocol is adopted) includes a standard inquiry of the owner to find out if the premises has historically flooded. In the event that flooding has previously occurred and is not revealed by the vendor, then a purchaser may issue a claim for damages as a result of such an incorrect answer. The buyer’s conveyancers should also conduct an enviro report. This will disclose whether there is a recorded flood risk. If so, further inquiries will need to be conducted.
I work for a long established estate agency in Chelsea where we have experienced a few flat sales put at risk due to leases having less than 80 years remaining. I have been given conflicting advice from local Chelsea conveyancing firms. Please can you confirm whether the seller of a flat can commence the lease extension formalities for the buyer?
As long as 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 buyer can avoid having to wait 2 years for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed before, or at the same time as completion of the disposal of the property.
An alternative approach is 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 have given up trying to purchase the freehold in Chelsea. Can the Leasehold Valuation Tribunal adjudicate on premiums?
Most definitely. We are happy to put you in touch with a Chelsea conveyancing firm who can help.
An example of a Lease Extension case for a Chelsea premises 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 term as at the valuation date was 57.06 years.
There are a lot of houses in Chelsea on unadopted lanes. I am acquiring such a house. Are there any advantages to buying a property on a private road?
Chelsea conveyancing lawyers are used to transacting houseson private. The property lawyer will investigate Land Registry data to identify any rights or liabilities. In many cases there is a management company (wholly owned by residents) that owners pay into for the upkeep of the road. Where there is one, the road will likely be maintained and look nicer than publicly owned.