My wife and I are hoping to buy a home in Devon and are in fact using a Devon conveyancing firm. Within the last couple of days our conveyancer has forwarded the sale agreement to be signed with a detailed report with a view to exchanging next week. Alliance & Leicester have this evening contacted us to inform me that there is now an issue as our Devon conveyancer is not on their approved list of lawyers. What do we do from here?
If you are buying a property requiring a mortgage it is usual for the purchasers' lawyers to also represent the mortgage company. In order to act for a bank or building society a law firm has to be on that lender's conveyancing panel. An application has to be made by the law firm to the lender to become a member of the lender's panel and there are increasingly strict criteria which the firm has to satisfy and indeed some lenders now require their panel members to be part of the Law Society’s Conveyancing Accreditation Scheme. Your solicitor should contact your bank and see if they can apply for membership of their conveyancing panel, but if that is not viable they will instruct their own lawyers to represent them. You don't have to instruct a firm on the bank's conveyancing panel and you may continue to use your own Devon solicitors, in which case it will likely add costs, and it will likely delay the transaction as you are adding another lawyer into the mix.
I own a freehold property in Devon but nevertheless invoiced for rent, why is this and what is this?
It’s unusual for properties in Devon and has limited impact for conveyancing in Devon 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 new rentcharges from 1977 onwards.
Previous rentcharges can now be redeemed by making a lump sum payment under the Act. Any rentcharges that are still in existence post 2037 is to be extinguished.
We wanted to use a property lawyer in Devon for our house purchase. Our broker has since notified us that our mortgage company Virgin Money won't deal with them. Why is this not regarded as unduly restrictive?
Lenders normally imposes restrictions either the category or the amount of conveyancing practices on their panel. Typical examples of such criteria being that a firm must have two or more partners. In addition to restricting the type of firm, a few lenders have decided to limit the amount of firms they permit to represent them. Be aware that Virgin Money have no responsibility for the quality of advice provided by any member of Virgin Money Conveyancer Panel. Mortgage fraud was a key driver in the reduction of conveyancing panels a few years ago even though there are mixed opinions about the level of solicitor involvement in some of that fraud. Figures from the Land Registry reveal that thousands of law firms, including some in or near Devon only execute a couple conveyances a year.
My aunt pointed out to me me that in buying a property in Devon there could be a number of restrictions affecting the ability to carry out external changes to a property. Is this right?
There are a number of properties in Devon which have some sort of restriction or requirement of consent to carry out external changes. Part of the conveyancing in Devon should determine what restrictions are applicable and advising you as part of a ROT that should be sent to you.
I am being told by my lawyer that absentee landlord insurance is needed on my purchase. What is the level of cover for Devon conveyancing?
The right level of absentee landlord indemnity insurance depends on who your lender is. It would differ for example between Barclays and Chelsea Building Society. Conveyancing solicitors as opposed to borrowers take out such policies.
I have today made my last payment due on my mortgage with HSBC. I assume I don't need a Devon conveyancing practitioner on the HSBC panel to remove the mortgage at the Land Registry. Am I right?
If you have finished paying off your HSBC mortgage, they may send you evidence showing that you have paid it off. Alternatively they may notify the Land Registry directly. The Land Registry need to see this evidence before they will remove the HSBC mortgage from the register. HSBC, and any evidence they send you, will determine the action you need to take. In cases where no conveyancer is acting for you and you have paid off your mortgage:
- but are not moving to another property
- where HSBC has sent the Land Registry the discharge electronically, and
- HSBC has instructed the Land Registry to do so
In relation to leasehold conveyancing in Devon what are the most common lease defects?
There is nothing unique about leasehold conveyancing in Devon. Most leases are individual and drafting errors can result in certain sections are missing. The following missing provisions could result in a defective lease:
-
A provision for the recovery of money spent for the benefit of another party.
A defective lease will likely cause problems when trying to sell a property as they can affect a potential buyer’s ability to obtain a mortgage. National Westminster Bank, Skipton Building Society, and Godiva Mortgages Ltd all have express requirements when it comes to what is expected in a lease. If a mortgage lender believes that the lease does not cover certain provisions they may refuse to grant the mortgage, forcing the purchaser to withdraw.
I bought a split level flat in Devon, conveyancing having been completed 8 years ago. Can you work out an approximate cost of a lease extension? Comparable properties in Devon with a long lease are worth £191,000. The average or mid-range amount of ground rent is £55 charged once a year. The lease expires on 21st October 2080
With just 54 years left to run the likely cost is going to be between £32,300 and £37,400 plus costs.
The suggested premium range that we have given is a general guide to costs for extending a lease, but we cannot give you a more accurate figure in the absence of detailed due diligence. Do not use the figures in tribunal or court proceedings. There are no doubt other issues that need to be considered and clearly you should be as accurate as possible in your negotiations. Please do not take any other action placing reliance on this information without first seeking the advice of a professional.
I have miscalculated my finances and am a few thousand pounds short a 10% deposit on my apartment purchase in Devon , but I am keen proceed. Do I have options?
You can accept a lower deposit. Most vendors will agree to a smaller deposit or even no deposit for a first time buyer or 100% mortgage. Be aware though that if you fail to complete you will still need to hand over a minimum of 10% of the purchase price regardless of how much deposit was agreed.
You can also agree a simultaneous exchange and completion as no deposit is required for this however neither party will be tied in until completion actually takes place and it can be risky if sellers change their mind at the last second