I am progressing with the sale of my house in Linslade and the estate agent has just called to warn that the buyers are changing their solicitor. The excuse is that the mortgage company will only work with solicitors on their conveyancing panel. On what basis would a big named mortgage company only engage with certain law firms rather the firm that they want to select for their conveyancing in Linslade ?
UK lenders have always had an approved set of law firms they are content to work with, but in the last few years big names such as Lloyds Banking Group, have considered and reduced their conveyancing panel– in some cases removing conveyancing firms who have worked with them for decades.
Lending institutions attribute this action to a rise in fraud as the reason for the pruning – criteria have been stiffened as a smaller panel is easier to monitor. No lender will say how many solicitors have been dropped, claiming the information is commercially sensitive, but the Law Society says it is hearing daily from firms that have been removed from panels. Plenty of firms do not even realise 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 unlikely to have any sway in the decision.
My partner and I changing mortgage lender for our flat in Linslade with Skipton. We have a son 18 who lives with us. Our solicitor has asked us to disclose any adults other than ourselves who lives in the flat. Our lawyer has now e-mailed a document for our son to sign, waiving any legal rights in the event that the flat is repossessed. I have two concerns (1) Is this form unique to the Skipton conveyancing panel as he did not need to sign this form when we purchased 3 years ago (2) Does our son by signing this compromise his rights to inherit the property?
First, rest assured that your Skipton conveyancing panel solicitor is doing the right thing as it is established procedure for any occupier who is aged 17 or over to sign the necessary Consent Form, which is purely to state that any rights he has in the property are postponed and secondary to Skipton. This is solely used to protect Skipton if the property were re-possessed so that in such circumstances, your son would be legally obliged to leave. It does not impact your son’s right to inherit the apartment. Please note that if your son were to inherit and the mortgage in favour of Skipton had not been discharged, he would be liable to take over the loan or pay it off, but other than that, there is nothing stopping him from keeping the property in accordance with your will or the rules of intestacy.
I purchased a freehold house in Linslade yet pay rent, why is this and what is this?
It’s unusual for properties in Linslade and has limited impact for conveyancing in Linslade 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 generation of fresh rentcharges from 1977 onwards.
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 dispensed with completely.
Yesterday I discovered that there is a flying freehold element on a property I have offered on two weeks back in what should have been a simple, no chain conveyancing. Linslade is the location of the property. What do you suggest?
Flying freeholds in Linslade are not the norm but are more likely to exist in relation to terraced houses. Even where you use a solicitor outside Linslade you must be sure that your lawyer goes through the deeds diligently. Your mortgage company may require your conveyancing solicitor to take out an indemnity policy. Some of the more diligent conveyancing solicitors in Linslade may ascertain that this is not enough and that the deeds be re-written to give you the most up to date legal protection. If so, the next door neighbour also had to sign up to the revised deeds.It is possible that your lender will not accept the situation so the sooner you find out the better. You should also check with your insurance broker as to whether they will insure a flying freehold property.
Am I right to be wary by brokers that I am dealing with are encouraging me to use a nationwide conveyancing firm rather than a High Street Linslade conveyancing firm?
As is the case with many professional services, often referrals from family and friends can be extremely useful or valuable. Yet there are many parties with a keen interest in a conveyancing transaction; estate agents, financial adviser and lenders might all put forward conveyancers to choose. On occasion these solicitors might be known to one of the organisations as one of the best in their field, but sometimes there might be a financial incentive behind the recommendation. You have the right to choose your preferred conveyancer. You need to be aware that most lenders specify a panel list of conveyancers you are obliged to use for the mortgage related work in your conveyancing.
I am a negotiator for a long established estate agency in Linslade where we have witnessed a few flat sales put at risk due to short leases. I have received conflicting advice from local Linslade conveyancing solicitors. Please can you clarify whether the seller of a flat can initiate the lease extension formalities for the purchaser on completion of the sale?
Provided that the seller has owned the lease 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. This means that the proposed purchaser need not have to sit tight for 2 years for a lease extension. Both sets of lawyers will agree to form of assignment. The assignment has to be done before, or at the same time as completion of the disposal of the property.
An alternative approach is 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.
I purchased a garden flat in Linslade, conveyancing having been completed March 2004. Can you give me give me an indication of the likely cost of a lease extension? Corresponding properties in Linslade with an extended lease are worth £255,000. The ground rent is £45 per annum. The lease ends on 21st October 2097
With only 73 years unexpired we estimate the premium for your lease extension to range between £8,600 and £9,800 plus costs.
The suggested premium range above a general guide to costs for renewing a lease, but we are not able to provide a more accurate figure in the absence of detailed due diligence. You should not use this information in tribunal or court proceedings. There may be additional issues that need to be considered and you obviously want to be as accurate as possible in your negotiations. Please do not move forward based on this information before getting professional advice.