My fiance and I are planning to buy a home in Fordingbridge and are in fact using a Fordingbridge conveyancing firm. Within the last couple of days our solicitor has sent a preliminary report and documents to look through in anticipation of exchanging contracts shortly. Lloyds TSB Bank have this morning contacted us to inform me that there is now an issue as our Fordingbridge lawyer is not on their approved list of lawyers. Please explain?
When purchasing a property with the benefit of a mortgage it is conventional for the purchasers' solicitors to also represent the purchaser's lender. 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 property lawyer 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 as you are at liberty to use your preferred Fordingbridge lawyers, in which case it will likely add costs, and it may delay matters as you have another set of people involved.
Due to move into my new home in Fordingbridge next Tuesday. I have now been asked to send a copy of my building insurance schedule by my solicitor as as she informs me that she is duty bound to validate that it is in order for the lender. What does the insurance need to cover?
All property lawyers on acting for mortgage companies would need to check that the following risks are covered fire; lightning; aircraft; explosion; earthquake; storm; flood; escape of water or oil; riot; malicious damage; theft or attempted theft; falling trees and branches and aerials; subsidence; heave;landslip;collision;accidental damage to underground services;professional fees, demolition and site clearance costs; and public liability to anyone else. There are some other issues such as the level of excess that are set out in a lender’s UK Finance Lenders’ Handbook conditions. These requirements are not specific to conveyancing in Fordingbridge.
I am intent on selling our home in Fordingbridge and according to the buyers it appears that there is a risk of it being constructed on contaminated land. Any local conveyancer would know this is not the case. It does beg the question why the buyers instructed an online conveyancing firm rather than a conveyancing solicitor in Fordingbridge. Having lived in Fordingbridge for 5 years we know that this is a non issue. Should we contact our local Authority to get clarification that there is no issue.
It would appear that you have a conveyancing lawyer already. Are they able to advise? You should enquire of your lawyer before you do anything. It is very possible that once the local authority has been informed of a potential issue it cannot be insured against (a bit like being diagnosed with a serious illness and then taking out health insurance to cover that same illness)
I am looking for a ground for flat up to £195,000 and found one close by in Fordingbridge I like with amenity areas and station nearby, however it only has 49 years unexpired on the lease. There is not much else in Fordingbridge in this price bracket, so just wondered if I would be making a grave error buying a short lease?
Should you require a mortgage the shortness of the lease will likely be problematic. Reduce the price by the amount the lease extension will cost if it has not already been discounted. If the existing owner has owned the property for at least twenty four months you may request that they start the process of the extension and then assign it to you. You can add 90 years to the current lease with a zero ground rent applied. You should consult your conveyancing lawyer regarding this matter.
Do you have any top tips for leasehold conveyancing in Fordingbridge from the point of view of expediting the sale process?
- Much of the delay in leasehold conveyancing in Fordingbridge can be avoided if you appoint lawyers as soon as your agents start marketing the property and ask them to collate the leasehold information which will be required by the purchasers’ lawyers. Some Fordingbridge leases require Licence to Assign from the landlord. If this is the case, it would be prudent to notify your estate agents to make sure that the purchasers obtain bank and professional references. Any bank reference will need to confirm that the buyers are able to meet the yearly service charge and the actual amount of the service charge should be quoted in the bank’s letter. You will therefore need to provide your estate agents with the service charge figures so that they can pass this information on to the buyers or their solicitors. Many freeholders or managing agents in Fordingbridge levy fees for supplying management packs for a leasehold home. You or your lawyers should discover the actual amount of the charges. The management information sought as soon as you have a buyer, thus accelerating the process. The typical amount of time it takes to obtain the necessary information is three weeks. It is the most frequent reason for frustration in leasehold conveyancing in Fordingbridge. If there is a history of conflict with your landlord or managing agents it is very important that these are resolved prior to the flat being put on the market. The buyers and their solicitors will be concerned about purchasing a flat where a dispute is unresolved. You may need to swallow your pride and discharge any arrears of service charge or resolve the dispute prior to completion of the sale. It is therefore preferable to have any dispute settled prior to the contract papers being issued to the buyers’ solicitors. You are still duty bound to disclose details of the dispute to the buyers, but it is better to reveal the dispute as historic as opposed to unsettled.
Fordingbridge Conveyancing for Leasehold Flats - Examples of Questions you should consider Prior to Purchasing
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Is the freehold reversion owned collectively by the leaseholders? How much is the ground rent and service charge? Are any of leasehold owners in dispute over their service charge payments?
My partner and I soon to complete on the purchase a house in Fordingbridge but as a consequence of wreckage from the recent storms I have negotiated compensation from the seller of £3k by way of a reduction in the price. I had intended this to be dealt with as part of the conveyancing process but the lender will not permit this. Should they have been approached?
Your conveyancing practitioner being on the bank conveyancing panel is required to disclose to the lender of any amendments to the purchase price. In the event that you did not allow your property lawyer to notify the price change to your bank then they would have no choice but to discontinue acting for you and the bank.