I am nearing exchange of contracts for my flat in Hainault and the EA has just called to warn that the buyers are swapping law firm. The reason given is that the bank will only engage with property lawyers on their approved list. Why would a major mortgage company only work with specific solicitors rather the firm that they want to appoint to handle their conveyancing in Hainault ?
Mortgage companies have always had panels of law firms they are content to work with, but in the last few years big names such as Nationwide, have reviewed and reduced their conveyancing panel– in some cases removing conveyancing firms who have represented them for over 25 years.
Banks justify this action to a rise in fraud as the reason for the cull – criteria have been stiffened as a smaller panel is easier to oversee. No lender will say how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society claims that it is hearing daily from firms that have been removed from panels. Plenty of firms are unaware that 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.
Is there a reason why leasehold purchase conveyancing in Hainault is more expensive?
The conveyancing costs for a leasehold premises in Hainault is frequently higher as compared to a freehold property. This is because there is an amount of extra work necessary in dealing with the landlord and managing agents to collate the evidence concerning whether the rent and maintenance charges have been cleared and whether there are any large sums expected to be spent in the near future on repairs or maintenance of the block.
I have been advised by a number of estate agents in Hainault to select a solicitor on your site. Is there a financial upside for Estate Agents to promote your services over and above another?
We refuse to offer any commission for sending work in our direction. We found it would be just too difficult a fee because a client could think, ‘Why is the agent getting a kickback? Why am I not receiving any benefit too?’ We would prefer to grow our business on genuine recommendations.
We're new to the buying process - had an offer accepted, but the property agent informed us that the seller will only move forward if we appoint the agent's preferred solicitors as they are insisting on a ‘quick sale’. Our preferred option is to instruct a high street conveyancer used to conveyancing in Hainault
It is highly unlikely the owners are driving this. If they desire ‘a quick sale', taking such a hostile approach to a genuine purchaser is not the way to achieve this. Try to communicate with the owners directly and explain that (a)you are keen to buy (b)you are ready to progress, with finances in place © you do not need to sell (d) you intend to proceed fast (e)however you will continue to instruct your own,trusted Hainault conveyancing lawyers - not the ones that will provide the negotiator at the agency a commission or meet his conveyancing targets demanded by senior management.
Can you provide any top tips for leasehold conveyancing in Hainault from the perspective of speeding up the sale process?
- Much of the delay in leasehold conveyancing in Hainault can be avoided where you get in touch lawyers as soon as your agents start advertising the property and request that they start to put together the leasehold information needed by the purchasers’ representatives. A minority of Hainault leases require Licence to Assign from the landlord. If this applies to your lease, you should place the estate agents on notice to make sure that the purchasers put in hand financial (bank) and professional references. Any bank reference will need to confirm that the buyers are financially capable of paying the annual 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. You may think that you are aware of the number of years left on your lease but it would be advisable verify this via your solicitors. A purchaser's lawyer will not be happy to advise their client to proceed with the purchase of a leasehold property the lease term is below 80 years. In the circumstances it is essential at an early stage that you consider whether the lease term requires a lease extension. If it does, contact your solicitors before you put your premises on the market for sale. If you have carried out any alterations to the premises would they have required Landlord’s approval? In particular have you installed wooden flooring? Most leases in Hainault state that internal structural changes or installing wooden flooring calls for a licence issued by the Landlord approving such works. If you fail to have the approvals in place do not communicate with the landlord without checking with your lawyer first. If you are supposed to have a share in the freehold, you should ensure that you are holding the original share certificate. Organising a new share certificate can be a lengthy formality and delays many a Hainault conveyancing deal. If a new share is necessary, do contact the company officers or managing agents (if relevant) for this sooner rather than later.
My wife and I have hit a brick wall in trying to purchase the freehold in Hainault. Can this matter be resolved via the Leasehold Valuation Tribunal?
Where there is a absentee landlord or if there is dispute about what the lease extension should cost, under the relevant legislation it is possible to make an application to the LVT to calculate the price.
An example of a Freehold Enfranchisement matter before the tribunal for a Hainault residence is 201 & 201a St. Barnabas Road in October 2013. The Tribunal decided that the price to be paid by the Applicants for the freehold interest is £20,071. This case related to 2 flats. The unexpired term was 69.26 years.
At what point do I pay the Stamp Duty Land Tax due for my house transaction in Hainault?
The property lawyer will fill out a stamp duty return for you as part of your Hainault conveyancing transaction for you to sign. On completion your solicitor will submit your Land Transaction application to the Inland Revenue and - assuming they have the funds - settle any tax bill liability on your behalf.