Me and my fiance are intending to purchase a 3 bedroom flat in Jesmond with a mortgage. We wish to retain our Jesmond solicitor, but the mortgage company says he's not on their "panel". It appears that we have little choice but to use one of the mortgage company panel solicitors or continue with our Jesmond lawyer as well as pay for one of their panel firms to represent them. This seems very unfair; is there anything we can do?
Unfortunately,no. The mortgage offered to you is subject to its terms and conditions, one of which will be that lawyers will on the bank’s conveyancing panel. Until recently, most lenders had large numbers of law firms on their panels: a borrower could choose one for themselves, as long as it was on the lender's panel. The lender would then simply instruct the borrower's lawyers to act for the lender, too. You can use your lender's panel lawyers or you could borrow from another lender which does not restrict your choice. Another option that might be available is for your Jesmond conveyancing solicitor to apply to be on the conveyancing panel.
Our lawyer has uncovered a a problem with the lease for the property we are purchasing in Jesmond. The other side have suggested title insurance as a solution. We are happy with insurance and will cover the costs. Our conveyancing practitioner has advised that he must ensure that the lender is content with this solution. Who is the client here, us or the bank?
Even though you have a mortgage offer from the lender 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 requirements. You and the lender are the client. The appropriate lender conditions have to be complied with.
How up to date is your search tool for Jesmond conveyancing solicitors on the Yorkshire BS conveyancing panel? Do Yorkshire BS send you an updated list?
Jesmond conveyancing firms themselves provide us confirmation that they are on the Yorkshire BS conveyancing panel as opposed to being supplied with a list from Yorkshire BS directly.
I'm the single recipient of my late grandmother’s will with all property in now in my sole name, including the house in Jesmond. The Jesmond property was put into my name in November. I plan to dispose of the property. I understand that there is a Mortgage Lenders 6 month 'rule', meaning my property ownership will be treated the same way as though I had purchased the property in November. Is the property unsalable for six months?
The CML handbook mandates conveyancers to: "report to us immediately if the owner or registered proprietor has been registered for less than six months." Technically you could be caught by that. How practical a view banks take of it, depend on the bank as this provision is primarily there to identify the purchase and immediately sell or the flipping of properties.
Can I be sure that the Jesmond conveyancing solicitor on the Yorkshire BS panel is any good?
When it comes to conveyancing in Jesmond seeking recommendations is a good starting point. Before you go ahead, check if they offer a no sale no fee offer. Also, you often get what you pay for - a firm which quotes more, will often provide a better service than one advertising the lowest fees. We would always recommend that you speak with the lawyer handling your transaction.
The mortgage over my property is with HSBC for my property in Jesmond. Conveyancing has been completed a year ago. In the event that I decide to rent out the flat and do not currently have a buy-to-let mortgage do I need to remortgage to a BTL mortgage or inform HSBC?
You must advise HSBC prior to letting out your property as this is likely to be a breach of HSBC’s mortgage conditions. In many cases banks or building societies will allow you to rent 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. You need not do this via a HSBC conveyancing panel firm.
Will my conveyancer be raising questions about flooding during the conveyancing in Jesmond.
Flooding is a growing risk for solicitors dealing with homes in Jesmond. Plenty of people will acquire a house in Jesmond, fully aware that at some time, it may suffer from flooding. However, aside from the physical damage, where a house is at risk of flooding, it may be difficult to obtain a mortgage, satisfactory insurance cover, or dispose of the property. There are steps that can be taken as part of the conveyancing process to forewarn the buyer.
Lawyers are not best placed to give advice on flood risk, but there are a number of searches that can be undertaken by the buyer or on a buyer’s behalf which can give them a better understanding of the risks in Jesmond. The conventional set of information given to a purchaser’s conveyancer (where the solicitors are adopting what is known as the Conveyancing Protocol) contains a standard question of the seller to determine whether the premises has suffered from flooding. In the event that the premises has been flooded in past and is not disclosed by the vendor, then a buyer may bring a claim for damages as a result of such an misleading reply. A buyer’s lawyers will also commission an environmental search. This should disclose whether there is a recorded flood risk. If so, additional investigations should be initiated.
I am attracted to a couple of flats in Jesmond both have about forty five years left on the lease term. should I be concerned?
There are no two ways about it. A leasehold apartment in Jesmond is a wasting asset as a result of the reducing lease term. The nearer the lease gets to its expiry date, the more it adversely affects the salability of the property. The majority of purchasers and lenders, leases with under 75 years become less and less attractive. On a more positive note, leaseholders can extend their leases by serving a Section 42 Notice. One stipulation is that they must have owned the premises for two years (unlike a Section 13 notice for purchasing the freehold, when leaseholders can participate from day one of ownership). When successful, they will have the right to an extension of 90 years to the current term and ground rent is effectively reduced to zero. Before moving forward with a purchase of premises with a short lease term remaining you should talk to a solicitor specialising in lease extensions and leasehold enfranchisement. We are are happy to put you in touch with Jesmond conveyancing experts who will explain the options available to you during an initial telephone conversation free of charge. More often than not it is possible to negotiate informally with the freeholder to extend the lease. They may agree to a smaller lump sum and an increase in the ground rent, but to shorter extension terms in return. You need to ensure that any new terms represent good long-term value compared with the standard benefits of the Section 42 Notice and that onerous clauses are not inserted into any redrafting of the lease.
Jesmond Conveyancing for Leasehold Flats - A selection of Questions you should ask Prior to Purchasing
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For many Jesmond leaseholds the cost for major works tend not to be built into the maintenance charges, although some managing agents in Jesmond require tenants to contribute towards a reserve fund created for the specific purpose of building a fund for larger repairs or maintenance. This information is helpful as a) areas could result in problems in the building as the communal areas may begin to deteriorate where services remain unpaid b) if the leasehold owners have a dispute with the running of the building you will wish to know about it What is the length of the lease?