I am hoping to complete my purchase in Kendal next Monday. 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 mortgage company. What does the insurance need to cover?
Any lawyer on acting for lenders 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 instructions. These requirements are not unique to conveyancing in Kendal.
I own a freehold house in Kendal yet pay rent, why is this and what is this?
It’s unusual for properties in Kendal and has limited impact for conveyancing in Kendal but some freehold properties in England (particularly common in North West England) pay an annual sum known as a Chief Rent or a Rentcharge to a third party who has no other legal interest in the land.
Rentcharge payments are usually between £2.00 and £5.00 per year. Rentcharges date back many centuries, but the Rent Charge Act 1977 barred the creation of new rentcharges post 1977.
Previous rentcharges can now be extinguished by making a one off payment under the Act. Any rentcharges that are still in existence in 2037 will be extinguished.
How does conveyancing in Kendal differ for newly converted properties?
Most buyers of new build property in Kendal approach us having been asked by the developer to exchange contracts and commit to the purchase even before the premises is constructed. This is because builders in Kendal typically buy 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 conveyancing solicitors 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 Kendal or who has acted in the same development.
I have been on the look out for a flat up to £235,500 and identified one near me in Kendal I like with a park and railway links in the vicinity, the downside is that it only has 52 remaining years left on the lease. There is not much else in Kendal suitable, so just wondered if I would be making a grave error acquiring a lease with such few years left?
Should you require a mortgage that many years may be a potential deal breaker. Discount the offer by the amount the lease extension will cost if not already taken into account. If the current owner has owned the property for a minimum of twenty four months you could request that they commence the lease extension formalities and pass it to you. You can add 90 years to the existing lease term with a zero ground rent applied. You should speak to your conveyancing lawyer concerning this.
I work for a reputable estate agency in Kendal where we have experienced a number of leasehold sales derailed as a result of leases having less than 80 years remaining. I have received conflicting advice from local Kendal conveyancing solicitors. Can you shed some light as to whether the vendor of a flat can start the lease extension process for the buyer?
As long as the seller has been the owner for at least 2 years it is possible, to serve a Section 42 notice to commence the lease extension process and assign the benefit of the notice to the purchaser. The benefit of this is that the proposed purchaser need not have to wait 2 years for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment needs to be completed before, or simultaneously with completion of the disposal of the property.
Alternatively, it may be possible to agree the lease extension with the freeholder either before or after the sale. If you are informally negotiating there are no rules and so you cannot insist on the landlord agreeing to grant an extension or transferring the benefit of an agreement to the buyer.
Leasehold Conveyancing in Kendal - Sample of Questions you should ask Prior to Purchasing
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This information is useful as a) areas may result in problems in the building as the common areas may begin to deteriorate where maintenance are not paid for b) if the tenants have a dispute with the managing agents you will wish to know about it How long is the Lease? In the main the cost for major works are not included within maintenance charges, albeit that some managing agents in Kendal require leaseholders to contribute towards a sinking fund and this is used to offset against major works.
We have instructed a Kendal conveyancing solicitor for our house purchase (FTB’s) and have noticed in the terms and conditions that they are not governed by the Financial Conduct Authority. Need I be concerned or is that standard with property lawyer?
We can't see why they should be. Most conveyancing practitioner don't lend money. You should check that they are regulated by the Solicitors Regulation Authority, who have strict rules covering amounts held on client account.