I am nearing exchange of contracts for my flat in Enderby and the EA has just called to advise that the purchasers are changing their property lawyer. The reason given is that the lender will only deal with property lawyers on their conveyancing panel. Why would a big named lender only work with certain solicitors rather the firm that they want to choose for their conveyancing in Enderby ?
Banks have always had an approved set of law firms that can act for them, but in the past few years big names such as Nationwide, have considered and reduced their conveyancing panel– in some cases removing conveyancing firms who have worked with them for more than 15 years.
Mortgage companies point to the increase in fraud as the reason for the reduction – criteria have been tightened as a smaller panel is easier to maintain. No lender will say how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society says it is hearing daily from firms that have been removed from panels. Some do not even realise they have been dropped until contacted by a borrower who has instructed them as might be the situation in your buyers' case. The purchasers are not going to have any sway in the decision.
Our lawyer has identified a a problem with the lease for the property we are purchasing in Enderby. The other side have offered defective title insurance as a workaround. We are content with insurance and will cover the costs. Our lawyer has advised that 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 bank are the client. Your property lawyer must comply with the UK Finance Lenders’ Handbook specifications. 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.
I am the registered owner of a freehold house in Enderby but nevertheless pay rent, why is this and what is this?
It’s unusual for properties in Enderby and has limited impact for conveyancing in Enderby 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 have existed for hundreds of years, but the Rent Charge Act 1977 barred the creation of new rentcharges post 1977.
Old rentcharges can now be redeemed by making a one off payment under the Act. Any rentcharges that are still in existence post 2037 is to be extinguished.
About to purchase a new build flat in Enderby. Conveyancing is daunting at the best of times but I have never purchased a new build flat before. What sort of enquires would be asked in new build legal work.
Here is a sample of a selection of leasehold new build questions that you can expect your new-build leasehold conveyancing in Enderby
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Where service of notices and proceedings can be at the property demised please confirm that this can be amended to include simultaneous services at the Lessees’ solicitors’ offices where the Lessee from time to time is not resident in the UK - such solicitors may be varied by notice in writing to the Landlord from time to time but otherwise will be as previously specified. Will control of the Management Company (if any) be handed over to purchasers on completion of the last sale or earlier? The Lease must contain a provision on behalf of the Vendor to pay the service charges in respect of unoccupied units in order to ensure that all services can be provided. Forfeiture - bankruptcy or liquidation must not apply under this provision. Please confirm the Lease plans are architect prepared.
I've recently found out that there is a flying freehold issue on a property I have offered on two weeks back in what should have been a straight forward, no chain conveyancing. Enderby is the location of the property. Is there any guidance you can impart?
Flying freeholds in Enderby are not the norm but are more likely to exist in relation to terraced houses. Even where you use a solicitor outside Enderby you would need to get your solicitor to go through the deeds thoroughly. Your bank may require your conveyancing solicitor to take out an indemnity policy. Some of the more diligent conveyancing solicitors in Enderby may ascertain 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 property.
Do I need to be suspicious by 3rd parties that I am dealing with are encouraging me to use a national conveyancing firm as opposed to a local Enderby conveyancing practice?
As with lots of service providers, often suggestions from connections can be extremely useful or valuable. But there are numerous players in a conveyancing transaction; estate agents, financial adviser and mortgage companies might all suggest solicitors to retain. Sometimes these conveyancers might be known to one of the organisations as being good in their field, but sometimes there might be a financial incentive behind the recommendation. You are at liberty to select your preferred lawyer. You need to be aware that most mortgage providers have an approved list of lawyers you have to use for the lender related work in your home move.