I am getting closer to an exchange on a house in Deptford and my parents have sent the exchange deposit to my lawyer. I am now informed that as the deposit has been sent from someone other than me my property lawyer needs to disclose this to my lender. I am advised that, in also acting for the lender he must advise them that the balance of the purchase price is coming from anyone other than me. I informed the lender regarding my parents' contribution when I applied for the mortgage, so is it really appropriate for this now to be an issue?
The solicitor is legally required to clarify with lender to make sure that they are aware that the balance of the purchase price is not from your own funds. The solicitor can only reveal this to your bank if you permit them to, failing which, your lawyer must cease to continue acting.
I purchased a freehold property in Deptford yet pay rent, why is this and what is this?
It’s unusual 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 creation of fresh rentcharges post 1977.
Old rentcharges can now be extinguished by making a lump sum payment under the Act. Any rentcharges that are still in existence after 2037 is to be dispensed with completely.
I have been advised by my solicitor that lack of planning permission insurance is necessary on my purchase. What is the typical level of cover needed for conveyancing in Deptford?
The right level of lack of planning permission indemnity insurance depends on your lender. It would differ for example between Santander and Chelsea Building Society. Conveyancing practitioners as opposed to members of the public take out such policies.
I happen to be the sole recipient of my late mum's estate with all property in now in my sole name, including the house in Deptford. The Deptford property was put into my name in June. I plan to dispose of the property. I understand that there is a CML 6 month 'rule', meaning my property ownership may be regarded the same way as though I had purchased the house in June. Is the property unsalable for six months?
The CML handbook requires conveyancers to: "report to us immediately if the owner or registered proprietor has been registered for less than six months." Technically you may be caught by that. How practical a view lenders take of it, depend on the lender as this clause is primarily there to identify subsales or the flipping of property.
Are all Deptford Conveyancing Quality Solicitors on the Kent Reliance conveyancing panel?
Some major lenders now use CQS as the starting point for Panel approval such as HSBC and Santander. CQS membership however is no guarantee to lender panel acceptance. That being said,the CML have indicated that it is likely to become a pre-requisite for firms wishing to remain on their approved list of firms.
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 developer to exchange contracts and commit to the purchase even before the property is built. This is because new home sellers in Deptford tend to acquire the site, 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 conveyancers 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.
I have been on the look out for a flat up to £245,000 and identified one close by in Deptford I like with a park and transport links in the vicinity, the downside is that it only has 49 remaining years left on the lease. There is not much else in Deptford suitable, so just wondered if I would be making a grave error buying a short lease?
Should you need a home loan the remaining unexpired lease term may be an issue. Discount the price by the anticipated lease extension will cost if it has not already been discounted. If the existing proprietor has owned the premises for at least twenty four months you could 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 speak to your conveyancing solicitor about this.
I am looking at a couple of maisonettes in Deptford both have about forty five years unexpired on the lease term. Do I need to be concerned?
There are plenty of short leases in Deptford. The lease is a legal document that entitles you to use the premises for a period of time. As a lease gets shorter the saleability of the lease decreases and it becomes more costly to extend the lease. For this reason it is advisable to increase the term of the lease. More often than not it is difficult to sell a property with a short lease as mortgage companies less inclined to grant a loan on properties of this type. Lease extension can be a protracted process. We advise that you seek professional assistance from a solicitor and surveyor with experience in this area.
Having spent years of dialogue we cannot agree with our landlord on how much the lease extension should cost for our flat in Deptford. Does the Leasehold Valuation Tribunal have jurisdiction to calculate the appropriate figures?
Where there is a missing freeholder or if there is dispute about what the lease extension should cost, under the Leasehold Reform, Housing and Urban Development Act 1993 it is possible to make an application to the LVT to decide the premium.
An example of a Freehold Enfranchisement decision for a Deptford premises 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 related to 3 flats. The number of years remaining on the existing lease(s) was 80.01 years.