The sellers of the house we are purchasing have instructed a conveyancing practitioner in Godmanchester who has suggested a preliminary contract with a down payment two thousand pounds. Are such agreements sensible?
There are a couple of main concerns with entering into any lock out contract (sometimes termed a shut-out contract) is that it diverts attention away from progressing with the conveyancing work, so in the absence of it needing minimal or no negotiation then it may transpire to be unhelpful. It is not particularly popular amongst Godmanchester conveyancing practitioners as a result. A further negative is the extent of the remedies available - a jilted purchaser should not expect to win an injunction to bar the vendor completing the sale to an alternative purchaser, so the only remedy available under the agreement will be the recovery of abortive costs and, in rare situations, the additional payment of penalties.
Last month we had a mortgage agreed in principle with Coventry BS. Godmanchester conveyancing lawyers have been selected. What is the average time that one could expect to receive a mortgage offer from Coventry BS?
There is no definitive answer here. Have Coventry BS conducted the survey? Have you informed Coventry BS as to your lawyers' details and checked that your lawyers are on the Coventry BS conveyancing panel? Sometimes it can take as long as six weeks for a mortgage offer to be issued.
The mortgage over my property is with HSBC for my property in Godmanchester. Conveyancing was finalised months ago. Should I wish to rent out the flat and do not currently have a buy-to-let mortgage do I need to remortgage to a buy-to-let mortgage or inform HSBC?
HSBC must be informed of your intention before renting your property as this is likely to be a breach of HSBC’s mortgage conditions. It may be that HSBC will permit you to let out your former home without needing to switch to a buy-to-let mortgage but some lenders will add a surcharge to your mortgage rate to reflect the higher risk. You should contact HSBC directly. It should not be necessary to do this via a HSBC conveyancing panel solicitor.
I can not work out if my mortgage offer requires a lease extension. I have called my Godmanchester bank branch on various occasions and was reassured it wasn't an issue and they would lend. My Godmanchester conveyancing solicitor - who is on the bank conveyancing panel- telephoned to say that they will not lend based on their UK Finance Lenders’ Handbook minimum lease term requirements. Who do I believe?
The solicitor has to comply with the CML Handbook section two conditions for your lender. Unless your lawyer obtains specific confirmation in writing that the lender will go ahead, your lawyer has no choice but to refrain from exchanging contract and committing you to the purchase. We would suggest that you ask the lender to contact your lawyer in writing confirming that they will accept the number of years remaining.
Are there restrictive covenants that are commonly picked up during conveyancing in Godmanchester?
Restrictive covenants can be picked up when reviewing land registry title as part of the legal transfer of property in Godmanchester. An 1874 stipulation that was seen was ‘The houses to be erected on the estate are each to be of a uniform elevation in accordance with the drawings to be prepared or approved by the vendor’s surveyor…’
How does conveyancing in Godmanchester differ for new build properties?
Most buyers of new build property in Godmanchester contact us having been asked by the seller to sign contracts and commit to the purchase even before the house is ready to move into. This is because developers in Godmanchester tend to purchase 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 property lawyers 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 used to new build conveyancing in Godmanchester or who has acted in the same development.
Is it best to go with a Godmanchester conveyancing solicitor based in the location that I am hoping to buy? An old friend can handle the legal work but they are based 300miles drive away.
The primary upside of using a local Godmanchester conveyancing practice is that you can attend the office to execute paperwork, hand in your ID and apply pressure on them where appropriate. They will also have local insight which is a bonus. However it's more important to get someone that will pull out all the stops for you. If other friends have used your friend and on the whole were happy that must trump using an unfamiliar Godmanchester conveyancing lawyer solely due to them being round the corner.
Do I cancel the direct debit for my mortgage with Santander as soon as a completion date for my home sale in Godmanchester has been agreed?
No, you should maintain meeting any mortgage payments to Santander pending the mortgage being redeemed out of the proceeds of sale as part of your Godmanchester conveyancing.