Our conveyancer has identified a defect with the lease for the property we are buying in Cwmcarn. The seller’s lawyers have offered title insurance as a workaround. We are happy with insurance and will cover the costs. Our lawyer says that he must be satisfied that the bank is happy with this solution. Are we the client or is the mortgage company ?
Even though you have a mortgage offer from the lender does not mean to say that the property will meet their requirements for the purposes of a mortgage. Your lawyer has to ensure that the lease has to comply with the UK Finance Lenders’ Handbook specifications. You and the bank are the client. The appropriate lender conditions have to be complied with.
Finally the sale completed on my house in Cwmcarn last October but my buyer keeps e-mailing me to moan that his lawyer needs to hear from mysolicitor. What should my lawyer have done following completion?
Following your disposal your lawyer should send the transfer documentation and all additional paperwork to the purchaser's conveyancer. Depending on the transaction, your conveyancer should also send confirmation that the legal charge in favour of the lender has been redeemed to the buyers lawyers. There is unlikely to be post completion formalities unique to conveyancing in Cwmcarn.
How does conveyancing in Cwmcarn differ for new build properties?
Most buyers of new build residence in Cwmcarn approach us having been asked by the builder to sign contracts and commit to the purchase even before the residence is finished. This is because builders in Cwmcarn usually acquire the real estate, plan the estate and want to get the plots sold off as they are building the properties. Buyers, therefore, will have to exchange contracts without actually seeing the house they are buying. To reduce the chances of losing the property, buyers should instruct conveyancing solicitors as soon as the property is reserved and mortgage applications should be submitted quickly. Due to the fact that it could be several months and even years between exchange of contracts and completion, the mortgage offer may need to be extended. It would be wise to use a lawyer who specialises in new build conveyancing especially if they are accustomed to new build conveyancing in Cwmcarn or who has acted in the same development.
I have been on the look out for a leasehold apartment up to £235,500 and identified one round the corner in Cwmcarn I like with amenity areas and transport links nearby, the downside is that it only has 52 years unexpired on the lease. I can't really find anything else in Cwmcarn for this price, so just wondered if I would be making a mistake acquiring a lease with such few years left?
Should you require a mortgage the remaining unexpired lease term will likely be problematic. Reduce the offer by the amount the lease extension will cost if not already taken into account. If the current proprietor has owned the premises for at least twenty four months you can request that they start the process of the extension and pass it to you. You can add 90 years to the current lease term and have £0 ground rent by law. You should consult your conveyancing solicitor regarding this.
All being well we will complete our sale of a £275,000 apartment in Cwmcarn in 8 days. The managing agents has quoted £348 for Landlord’s certificate, insurance certificate and previous years service charge statements. Is the landlord entitled to charge exorbitant fees for a flat conveyance in Cwmcarn?
Cwmcarn conveyancing on leasehold maisonettes normally involves the buyer’s lawyer submitting questions for the landlord to answer. Although the landlord is under no legal obligation to respond to these enquiries the majority will be content to assist. They are at liberty to levy a reasonable charge for responding to enquiries or supplying documentation. There is no set fee. The average costs for the paperwork that you are referring to is over three hundred pounds, in some transactions it is above £800. The management information fee levied by the landlord must be accompanied by a summary of entitlements and obligations in relation to administration fees, otherwise the invoice is not strictly payable. Reality however dictates that one has little choice but to pay whatever is requested of you should you wish to sell the property.
Cwmcarn Leasehold Conveyancing - Examples of Questions you should ask Prior to Purchasing
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For many Cwmcarn leaseholds the cost for major works tend not to be included within service charges, although a few managing agents in Cwmcarn obliged leaseholders to contribute towards a sinking fund and this is used to offset against larger works. What is the name of the managing agents? Is the freehold reversion owned jointly by the tenants?
Our lawyer in Cwmcarn has uncovered a a problem with the lease for the property we are purchasing in Cwmcarn. The other side have offered defective title insurance as a solution. We are happy with insurance and will pay for it. Our solicitor has advised that as he is on the lender conveyancing panel he must be satisfied that the lender is happy with this solution. Are we the client or is the lender?
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. A precondition to being on the bank approved panel is to comply with the UK Finance Lenders’ Handbook requirements. The UK Finance Lenders’ Handbook conditions require your lawyer to disclose issues such as defects will the lease so that the lender 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 lawyer will have no choice but to discontinue acting for you.