Much to our surprise we have been advised by our lender that my Fforestfach the law firm I have appointed is not on the mortgage company Solicitor panel. What can I do to be sure if this is correct?
The first thing you need to do is to call your Fforestfach lawyer directly. It is reasonable to expect your lawyer to inform you of the situation. If they are not on the panel they could put your in touch with solicitors on the approved list of lawyers for your mortgage company.
Our solicitor has uncovered a defect with the lease for the property we are purchasing in Fforestfach. The other side have put forward title insurance as a solution. We are content with insurance and will cover the costs. Our property lawyer has advised that he must ensure that the bank is happy with this solution. Are we the client or is the bank?
Even though you have a mortgage offer from the bank does not mean to say that the property will meet their specifications 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 mortgage company are the client. These conveyancing instructions have to be complied with.
Are the BSA intent on creating a online directory to to identify law firms on the Darlington Building Society conveyancing panel for example in Fforestfach?
We are not aware of any plans on the part of the BSA to promote such a tool.
I decided to have a survey done on a house in Fforestfach in advance of instructing lawyers. I have been told that there is a flying freehold aspect to the house. The surveyor advised that some lenders tend not issue a mortgage on such a home.
It depends who your proposed lender is. Bank of Scotland has different requirements for example to Nationwide. Should you wish to telephone us we can check via the appropriate bank. If you lender is happy to lend one our lawyers can assist as they are accustomed to dealing with flying freeholds in Fforestfach. Conveyancing may be slightly more expensive based on your lender's requirements.
I was advised by a few selling agents in Fforestfach to choose a solicitor using your seach tool. What’s the financial inducement for Estate Agents to promote your lawyers ahead of a competitor’s?
We refuse to offer any commission for sending work to this site. We thought it would be too underhand to pay a commission as home movers will think, ‘How come the agent getting a kickback? Why aren’t I receiving any benefit too?’ We would prefer to grow our business on genuine recommendations.
What makes a Fforestfach lease unacceptable for security purposes?
There is nothing unique about leasehold conveyancing in Fforestfach. Most leases are individual and legal mistakes in the legal wording can result in certain clauses are wrong. For example, if your lease is missing any of the following, it could be defective:
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Maintenance charge proportions which don’t add up to the correct percentage
You will have difficulties when selling your property if you have a defective lease primarily because it impacts on the ability to obtain a mortgage on the property. Halifax, Leeds Building Society, and Aldermore all have very detailed conveyancing instructions when it comes to what is expected in a lease. Where a lender has been advised by their lawyers that the lease is defective they may refuse to provide security, obliging the buyer to pull out.
I bought a 1 bedroom flat in Fforestfach, conveyancing was carried out 3 years ago. Can you work out an approximate cost of a lease extension? Comparable flats in Fforestfach with a long lease are worth £176,000. The ground rent is £50 invoiced annually. The lease ceases on 21st October 2075
With just 50 years unexpired we estimate the premium for your lease extension to span between £31,400 and £36,200 as well as legals.
The figure that we have given is a general guide to costs for extending a lease, but we cannot give you the actual costs in the absence of comprehensive due diligence. Do not use this information in tribunal or court proceedings. There are no doubt other issues that need to be taken into account and you obviously should be as accurate as possible in your negotiations. Neither should you take any other action based on this information before seeking the advice of a professional.