All was ready to complete my purchase in Morden next Friday. My solicitor now wants me to supply her with evidence of content and building insurance for the property as as she informs me that she is duty bound to validate that it is in order for the bank. What risks does the mortgage company expect the insurance to cover?
All property lawyers 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 limited to conveyancing in Morden.
I purchased a freehold premises in Morden but still invoiced for rent, why is this and what is this?
It is rare for properties in Morden and has limited impact for conveyancing in Morden 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 establishment of new rentcharges post 1977.
Previous rentcharges can now be redeemed by making a lump sum payment under the Act. Any rentcharges that are still in existence in 2037 is to be extinguished.
I am considering applying for a Clydesdale mortgage for purchase of a newly converted (under development) in Morden with 60% LTV. Is it compulsory to choose a solicitor on the conveyancing panel for Clydesdale ?
There is nothing to stop you using your solicitor, but Clydesdale will insist on their interests being represented by a firm on their conveyancing panel. There is much more potential for delays and confusion with two solicitors involved, and it will undoubtedly be more expensive too.
Me and my partner are purchasing a property in Morden. I might seem paranoid but how we can trust a solicitor? On the day of competition we will need to deposit our life savings into their account. What protection do we have from them run away with our money?
Be assured that all money in a Solicitors client account is 100% safe, and even if your Solicitor ran off with it, the Law Society would reimburse you fully.
I'm the single recipient of my late father’s estate with all property in now in my sole name, including the house in Morden. The Morden property was put into my name in July. I plan to dispose of the house. I do know about the Mortgage Lenders 6 month 'rule', meaning my property ownership could be considered the same way as if I'd bought the property in July. Will no one buy the property for half a year?
The CML handbook requires solicitors to: "report to us immediately if the owner or registered proprietor has been registered for less than six months." By the strict wording you may be impacted by that. How sensible a view lenders take of it, depend on the lender as this requirement is primarily there to capture subsales or the quick reselling of property.
I am purchasing a property in Morden. A rare aspect is that the roof has a solar panel. Lloyds have issued a mortgage offer so presumably this is not a concern to them. Why is my solicitor raising questions about the panel?
As you are obtaining a mortgage with Lloyds your lawyer must comply with the conveyancing requirements contained in Part two of UK Finance Lenders’ Handbook for Lloyds. The CML Handbook contains minimum requirements for solar panel roof-space leases, and conveyancers are required to report to Lloyds where a lease fails to comply with these requirements. The requirements relate to the installation of panels on properties nationwide and is not isolated to Morden.
Me and my brother have a 4 bedroom Georgian property in Morden. Conveyancing lawyer represented me and Barclays Direct. I happened to do a free search for it on the Land Registry database and I saw a couple of entries: one for freehold, the second leasehold under the exact same address. Is it worth asking Barclays Direct to clarify?
You need to assess the Freehold register you have again and check the Charges Register as there may be mention of a lease. The best way to be sure that you are also the registered proprietor of the leasehold and freehold title as well is to check (£3). It is not completely unheard of in Morden and other locations in the country and poses no real issues for owners other than when they mortgage they have to account for both freehold and leasehold interests when dealing with buyers. You can also enquire as to the position with your conveyancing lawyer who completed the work.
I decided to have a survey done on a property in Morden before instructing conveyancers. I have been advised that there is a flying freehold element to the property. Our surveyor has said that some banks will not give a loan on a flying freehold premises.
It depends who your proposed lender is. Lloyds has different instructions from Halifax. If you e-mail us we can look into this further via the relevant lender. If you lender is happy to lend one our lawyers can help as they are used to dealing with flying freeholds in Morden. Conveyancing may be slightly more expensive based on your lender's requirements.