My husband and I are getting closer to an exchange on a flat in Deptford and my parents have sent the 10% deposit to my lawyer. I am now advised that as the deposit has not come from me my lawyer needs to make a notification to my mortgage company. I am advised that, in also acting for the lender he must inform them that the balance of the purchase price is not just from me. I advised the lender concerning my parents' contribution when I applied for the mortgage, so is it really appropriate for this now to be an issue?
The property lawyer is legally required to clarify with the bank to make sure that they are aware that the balance of the purchase price is not from your own funds. Your solicitor can only reveal this to your lender if you agree, failing which, your lawyer must cease to continue acting.
I am the registered owner of a freehold house in Deptford but nevertheless invoiced for rent, why is this and what is this?
It is rare for properties in Deptford and has limited impact for conveyancing in Deptford 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 date back 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 post 2037 will be extinguished.
My solicitor has informed me that lack of planning permission insurance is necessary on my purchase. What is the level of cover for Deptford conveyancing?
The right level of lack of planning permission indemnity insurance depends on your lender. It would differ for example between Santander and Norwich and Peterborough Building Society. Conveyancing lawyers as opposed to members of the public take out such insurances.
I'm the single recipient of my late grandmother’s will with all property in now in my sole name, including the my former home in Deptford. The Deptford property was put into my name in June. I want to move. I do know about the CML six month 'rule', meaning my property ownership may be treated the same way as if I'd bought the house in June. Is the property unsalable for six months?
The CML handbook instructs solicitors to: "report to us immediately if the owner or registered proprietor has been registered for less than six months." By the strict wording you could be affected by that. Some lenders would take a practical view as this clause chiefly exists to identify subsales or the wholesaling and assigning of property.
Is it correct that all Deptford CQS (Conveyancing Quality Scheme) solicitors are on the UBS conveyancing list of approved firms?
A selection of lenders now utilise the accreditation scheme as the starting point for Panel approval such as HSBC and Santander. The Law Society’s CQS accreditation however is no guarantee to lender panel acceptance. Nevertheless,the CML have indicated that it is likely to become a pre-requisite for firms wishing to remain on their approved list of conveyancing solicitors.
How does conveyancing in Deptford differ for newly converted properties?
Most buyers of new build or newly converted property in Deptford approach us having been asked by the seller to exchange contracts and commit to the purchase even before the house is finished. This is because house builders in Deptford usually purchase 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 Deptford or who has acted in the same development.
Over the last few months I have been searching for a ground for flat up to £195,000 and found one round the corner in Deptford I like with amenity areas and station nearby, however it's only got 51 years on the lease. I can't really find anything else in Deptford in this price bracket, so just wondered if I would be making a grave error purchasing a short lease?
If you need a mortgage the shortness of the lease will likely be problematic. Reduce the offer by the expected lease extension will cost if not already taken into account. If the current proprietor has owned the property for at least 2 years you can ask them to start the process of the extension and then assign it to you. An additional ninety years can be extended on to the current lease and have £0 ground rent by law. You should consult your conveyancing lawyer about this matter.
I am looking at a two maisonettes in Deptford both have about 50 years left on the leases. Will this present a problem?
There are no two ways about it. A leasehold flat in Deptford is a wasting asset as a result of the shortening lease. The closer the lease gets to zero years unexpired, the more it reduces the marketability of the property. For most buyers and banks, leases with under eighty years become less and less attractive. 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 premises 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 property 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 Deptford conveyancing experts who will explain the options available to you during an initial telephone conversation free of charge. More often than not it is possible to negotiate informally with the freeholder to extend 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 the agreed 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 own a ground floor flat in Deptford. In the absence of agreement between myself and the landlord, can the Leasehold valuation Tribunal determine the premium payable for a lease extension?
Most definitely. We can put you in touch with a Deptford conveyancing firm who can help.
An example of a Freehold Enfranchisement matter before the tribunal for a Deptford residence is 41 Endwell Road in March 2013. this matter relateed to the acquisition of the freehold of a mid- terraced Victorian house converted into three separate self-contained dwellings. By an order dated 28/11/2012, Deputy District Judge Cole in the Bromley County Court held that the leaseholders were entitled to acquire the freehold and directed that the premium payable be determined by this Tribunal. The Tribunal assessed the premium to be £14,753 This case affected 3 flats. The unexpired term as at the valuation date was 80.01 years.