My solicitor has identified a a problem with the lease for the apartment we are purchasing in Crawley Down. The other side have offered title insurance as a solution. We are content with insurance and will pay for it. Our conveyancing practitioner has advised that he must ensure that the lender is content with this solution. Who is the client here, us or 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 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 conveyancer will have no choice but to discontinue acting for you.
Will our solicitor be making enquiries about flooding as part of the conveyancing in Crawley Down.
The risk of flooding is if increasing concern for solicitors carrying out conveyancing in Crawley Down. There are those who acquire a house in Crawley Down, completely aware that at some time, it may suffer from flooding. However, aside from the physical damage, if a property is at risk of flooding, it may be difficult to obtain a mortgage, satisfactory insurance cover, or dispose of the property. Steps can be carried out during the course of a property purchase to forewarn the buyer.
Conveyancers are not qualified to impart advice on flood risk, however there are a numerous searches that may be undertaken by the buyer or by their conveyancers which can figure out the risks in Crawley Down. The standard completed inquiry forms given to a buyer’s lawyer (where the Conveyancing Protocol is adopted) contains a usual inquiry of the seller to determine whether the premises has historically flooded. In the event that flooding has previously occurred which is not revealed by the owner, then a buyer could commence a claim for damages as a result of such an incorrect reply. A buyer’s lawyers will also conduct an enviro search. This should indicate whether there is any known flood risk. If so, further investigations will need to be conducted.
I've recently found out that there is a flying freehold element on a property I put an offer in last month in what was supposed to be a simple, no chain conveyancing. Crawley Down is the location of the property. Can you shed any light on this issue?
Flying freeholds in Crawley Down are unusual but are more likely to exist in relation to terraced houses. Even where you use a solicitor outside Crawley Down you must be sure that your lawyer goes through the deeds very carefully. Your lender may require your conveyancing solicitor to take out an indemnity policy. Some of the more diligent conveyancing solicitors in Crawley Down may determine 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.
My uncle has suggested that I appoint his conveyancers in Crawley Down. Do I take his advice?
No doubt the ideal way to find a conveyancing practitioner is to have guidance from friends or relatives who have used the solicitor that you are contemplating using.
I am tempted by the attractive purchase price for a couple of flats in Crawley Down which have approximately 50 years unexpired on the leases. should I be concerned?
There is no doubt about it. A leasehold flat in Crawley Down is a wasting asset as a result of the reducing lease term. The closer the lease gets to its expiry date, the more it adversely affects the marketability of the premises. For most buyers and mortgage companies, leases with less than eighty years become less and less marketable. On a more upbeat note, leaseholders can extend their leases by serving a Section 42 Notice. One stipulation is that they must have owned the property for two years (unlike a Section 13 notice for purchasing the freehold, when leaseholders can participate from day one of ownership). When successful, they will have the right to an extension of 90 years to the current term and ground rent is effectively reduced to zero. Before moving forward with a purchase of a residence with a short lease term remaining you should talk to a solicitor specialising in lease extensions and leasehold enfranchisement. We are are happy to put you in touch with Crawley Down conveyancing experts who will explain the options available to you during an initial telephone conversation free of charge. A more straightforward and quicker method of extending would be to contact your landlord directly and sound him out on the prospect of extending the lease. You may find he or she is happy to negotiate informally and willing to consider your offer straight off, without having to involve anyone else. This will save you time and money and it could help you reach a lower price on the lease. You need to ensure that any new terms represent good long-term value compared with the standard benefits of the Section 42 Notice and that onerous clauses are not inserted into any redrafting of the lease.
I am the registered owner of a 1 bedroom flat in Crawley Down, conveyancing formalities finalised 7 years ago. Can you shed any light on how much the price could be for a 90 year extension to my lease? Equivalent flats in Crawley Down with a long lease are worth £181,000. The ground rent is £55 invoiced annually. The lease runs out on 21st October 2076
With 51 years left to run we estimate the price of your lease extension to span between £30,400 and £35,200 plus legals.
The figure that we have given is a general guide to costs for renewing a lease, but we are not able to advice on a more accurate figure without more detailed investigations. Do not use this information in a Notice of Claim or as an informal offer. There may be other issues that need to be considered and clearly you should be as accurate as possible in your negotiations. You should not move forward placing reliance on this information without first getting professional advice.
We are midway through buying a residence in Crawley Down. Conveyancing lawyer has told us the title is "Leasehold". Will this likely adversely affect the salability of the property?
Crawley Down conveyancing does not normally involve leasehold houses. The key factor here is the length of lease and the ground rent. If it's 999 years with a nominal rent, it's essentially freehold, so it shouldn't impact the marketability significantly.
On the flip side, if it's, say, fifty five years it will have a significant effect on the value, and probably wouldn't be mortgageable. The remaining lease term and ground rent will be stated in the lease provided to your property lawyer.