We are hoping to buy a 2 bedroom flat in Ludlow with a mortgage. We like our Ludlow conveyancer, but the bank says he's not on their "panel". It appears that we have little choice but to appoint one of the mortgage company panel solicitors or continue with our Ludlow conveyancer and pay for one of their panel lawyers to act for them. This feels very unfair; is there anything we can do?
No, not really. The mortgage offered to you is subject to its terms and conditions, one of which will be that lawyers will on the lender’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 Ludlow conveyancing lawyer to apply to be on the conveyancing panel.
I had intended to instruct a conveyancing solicitor in Ludlow for our house purchase. Our financial adviser informed us that our mortgage lenders Leeds Building Society won't deal with them. Why is this not regarded as unduly restrictive?
Pre- 2008 most lenders had an appetite for risk which was higher than today. Almost all Ludlow conveyancing firms would have been on many bank panels. The Financial Services Authority in 2010 carried out a thematic investigation into mortgage fraud which come to the conclusion: mortgage lenders should know the conveyancing solicitors dealt with. Consequently, lenders have regularly sought more information from law firms regarding their operations and their employees and set certain criteria such a completing on a minimum amount of conveyancing. Many Ludlow conveyancing firms that have been excluded from lender panels have a 100% healthy track record, no complaints and no claims and didn't just 'dabble' in conveyancing. Ludlow is one of the thousands of locations where the lawyers showing on our search results are are approved Leeds Building Society.
How does conveyancing in Ludlow differ for new build properties?
Most buyers of new build or newly converted property in Ludlow contact us having been asked by the developer to exchange contracts and commit to the purchase even before the property is ready to move into. This is because builders in Ludlow typically buy the real estate, 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 accustomed to new build conveyancing in Ludlow or who has acted in the same development.
Yesterday I discovered that there is a flying freehold issue on a house I put an offer in two weeks back in what was supposed to be a straight forward, chain free conveyancing. Ludlow is the location of the property. Can you offer any guidance?
Flying freeholds in Ludlow are rare but are more likely to exist in relation to terraced houses. Even though you don't necessarily need a conveyancing solicitor in Ludlow you would need to get your solicitor to go 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 Ludlow 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 residence.
Should I be wary that brokers that I am dealing with are suggesting an online conveyancing firm rather than a local Ludlow conveyancing firm?
As is the case with lots of service providers, often recommendations from connections can be extremely useful or valuable. Yet there are lots of parties with a keen interest in a conveyancing transaction; estate agents, financial adviser and mortgage companies might all suggest lawyers to instruct. On occasion the lawyers might be known to one of the organisations as experts in their field, but sometimes there behind the scenes commercial relationship behind the endorsement. You have the right to appoint your own conveyancer. Don't forget that some lenders have an approved list of lawyers you must use for the mortgage aspect of your transaction.
There are only Fifty years remaining on my lease in Ludlow. I am keen to get lease extension but my landlord is absent. What should I do?
On the basis that you qualify, under the Leasehold Reform, Housing and Urban Development Act 1993 you can submit an application to the County Court for for permission to dispense with the service of the initial notice. This will enable the lease to be granted an extra 90 years by the magistrate. However, you will be required to demonstrate that you have made all reasonable attempts to find the freeholder. On the whole a specialist should be helpful to conduct investigations and prepare an expert document which can be accepted by the court as proof that the freeholder is indeed missing. It is wise to seek advice from a conveyancer in relation to devolving into the landlord’s absence and the vesting order request to the County Court covering Ludlow.
Ludlow Leasehold Conveyancing - A selection of Queries before buying
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The majority of Ludlow leasehold properties will have a service bill for the upkeep of the block invoiced by the landlord. If you acquire the flat you will have to pay this charge, normally quarterly during the year. This could vary from a couple of hundred pounds to thousands of pounds for bigger purpose-built buildings. There will also be a rentcharge to be met yearly, this is usually not a significant figure, say approximately £25-£75 but you need to enquire as on occasion it can be many hundreds of pounds. It would be sensible to find out if there are any onerous restrictions in the lease. For instance plenty of leases prohibit pets being permitted in certain buildings in Ludlow. If you love the propertyin Ludlow however your dog is not allowed to live with you then you will be faced hard compromise. If a Ludlow lease has less than 80 years it will have adverse implications on the salability of the property. It is worth checking with your lender that they are willing to go ahead with the loan given the lease term. Leases with less than 80 years remaining means that you will most likely have to extend the lease at some point and you need to have some idea of what this will be. For most Ludlowlease extensions you would be required to have been the owner of the premises for two years before you are eligible to extend the lease.