I purchased a freehold residence in Chinatown but nevertheless pay rent, why is this and what is this?
It is rare for properties in Chinatown and has limited impact for conveyancing in Chinatown 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 establishment of new rentcharges from 1977 onwards.
Previous rentcharges can now be redeemed by making a one off payment under the Act. Any rentcharges that are still in existence after 2037 is to be dispensed with completely.
This question may be naive but I am wet behind the ears as a 1st time buyer of a ground floor flat in Chinatown. Do I pick up the keys to the house on completion from my solicitor? If so, I will use a local conveyancing solicitor in Chinatown?
There is no need to visit the lawyers office on the day of completion. Your solicitors will arrange to send the completion advance to the seller's lawyers, and once they have received this, you will be invited to collect the keys from the selling Agents and start moving into the property. This tends to happen early afternoon.
Is it the case that all Chinatown conveyancing solicitors on the Yorkshire BS conveyancing panel are regulated by the SRA?
As a firm of solicitors, in order to be on the Yorkshire BS conveyancing panel they would need to be overseen by the Solicitors Regulatory Authority. The majority of mortgage companies do allow licenced conveyancers on their panel and in such a situation the organisation would be governed by the CLC.
We previously appointed solicitors locally in Chinatown on the Yorkshire BS solicitor approved list. They have just invoiced me a separate fee for handling the Yorkshire BS mortgage. Is this an additional conveyancing fee set by Yorkshire BS?
As unfair as it may seem, as long as it’s in their Terms and Conditions or estimate then yes your property lawyer is entitled to levy a fee for this. The fee is not set by Yorkshire BS but by your Chinatown property lawyer. Numerous firms on the Yorkshire BS panel will levy ’dealing with mortgage’ fee and others do not.
I'm purchasing a new build house in Chinatown with a loan from Aldermore. The builders would not move on the price so I negotiated five thousand pounds worth of fixtures and fittings instead. The estate agent suggested that I not to tell my lawyer about the side-deal as it may adversely affect my mortgage with the lender. Do I keep my lawyer in the dark?.
All lenders require a Disclosure of Incentives Form from the builder of any new build, converted or renovated property, It is available online from the Lenders’ Handbook page on the CML website. CML form is completed and handed to the lender's surveyor when the inspection is done.
Lenders have different policies on incentives. Some accept none at all, cash or physical, while others will accept cash incentives up to 5%.
Hard to understand why the representative of a builder would be suggesting you withold information from a solicitor when all this will be clearly visible on forms the builder has to supply to its solicitor, the buyer's solicitor and the surveyor.
Yesterday I discovered that there is a flying freehold issue on a property I put an offer in two weeks back in what should have been a quick, no chain conveyancing. Chinatown is the location of the property. Is there any advice you can give?
Flying freeholds in Chinatown are unusual but are more likely to exist in relation to terraced houses. Even though you don't necessarily need a conveyancing solicitor in Chinatown you must be sure that your lawyer goes through the deeds very carefully. Your mortgage company may require your conveyancing solicitor to take out an indemnity policy. Some of the more diligent conveyancing solicitors in Chinatown may decide that this is not enough and that the deeds be re-written to give you the most up to date legal protection. If so, the next door neighbour also had to sign up to the revised deeds.It is possible that your lender will not accept the situation so the sooner you find out the better. You should also check with your insurance broker as to whether they will insure a flying freehold premises.
Do you have any top tips for leasehold conveyancing in Chinatown with the intention of expediting the sale process?
- A significant proportion of the frustration in leasehold conveyancing in Chinatown can be avoided if you get in touch lawyers the minute your agents start advertising the property and ask them to collate the leasehold information which will be required by the purchasers’ lawyers. If there is a history of conflict with your landlord or managing agents it is very important that these are settled prior to the flat being marketed. The buyers and their solicitors will be reluctant to purchase a property where a dispute is unresolved. You may need to swallow your pride and pay any arrears of service charge or resolve the dispute prior to the buyers completing the purchase. It is therefore preferable to have any dispute settled ahead of the contract papers being issued to the buyers’ solicitors. You will still have to reveal details of the dispute to the buyers, but it is clearly preferable to reveal the dispute as historic as opposed to unsettled. In the event that you altered the property did you need the Landlord’s permission? Have you, for example installed wooden flooring? Chinatown leases often stipulate that internal structural alterations or installing wooden flooring calls for a licence from the Landlord consenting to such alterations. If you dont have the approvals to hand you should not contact the landlord without contacting your solicitor in the first instance. A minority of Chinatown leases require Landlord’s consent to the sale and approval of the buyers. If this applies to your lease, you should notify your estate agents to make sure that the purchasers obtain bank and professional references. The bank reference will need to confirm that the buyers are able to meet the yearly service charge and the actual amount of the service charge should be quoted in the bank’s letter. You will therefore need to provide your estate agents with the actual amount of the service charge so that they can pass this information on to the buyers or their solicitors.
Following months of correspondence we are unable to agree with our landlord on how much the lease extension should cost for our flat in Chinatown. Can we issue an application to the Residential Property Tribunal Service?
Where there is a absentee freeholder or where there is disagreement about the premium for a lease extension, under the Leasehold Reform, Housing and Urban Development Act 1993 you can apply to the LVT to decide the sum to be paid.
An example of a Freehold Enfranchisement case for a Chinatown residence is 36 New Wanstead in August 2010. The Tribunal arrived at a valuation of the premium for the freehold of £22,359. This case was in relation to 2 flats. The unexpired term as at the valuation date was 73.92 years.
I need to switch lawyers as my Chinatown lawyer is not on the mortgage company's approved list of conveyancing solicitors. How simple is it to change conveyancer?
If you haven't yet instructed a solicitor to do anything for you and at this stage simply received quotes, you're perfectly free to choose a different solicitor to carry out your work for you. The best way is to get recommendations from friends or family who have actually used the solicitor or conveyancer in Chinatown that you're considering.