We are acquiring a new build apartment in Morpeth and my solicitor is informing me that she has to the lender to reveal incentives from the builder. The Estate Agents are hassling me to sign contracts and I would rather not prolong deal. Is my lawyer right?
You should not exchange unless you have been advised to do so by your solicitor. A precondition to being on a mortgage company panel is to comply with the UK Finance Lenders’ Handbook provisions. The CML Conveyancing Handbook requires that your lawyer have the appropriate Disclosure of Incentive form completed by the developer and accepted by your lender.
Will our lawyer be asking questions concerning flooding during the conveyancing in Morpeth.
Flooding is a growing risk for conveyancers conducting conveyancing in Morpeth. There are those who purchase a house in Morpeth, completely expectant that at some time, it may be flooded. However, leaving to one side the physical destruction, where a house is at risk of flooding, it may be difficult to obtain a mortgage, satisfactory insurance cover, or dispose of the premises. There are steps that can be taken as part of the conveyancing process to forewarn the purchaser.
Conveyancers are not best placed to offer advice on flood risk, but there are a numerous searches that may be undertaken by the buyer or on a buyer’s behalf which should give them a better understanding of the risks in Morpeth. The conventional set of property information forms supplied to a purchaser’s solicitor (where the solicitors are adopting what is known as the Conveyancing Protocol) incorporates a usual question of the vendor to find out whether the premises has historically flooded. If the property has been flooded in past and is not revealed by the seller, then a purchaser could commence a legal claim for losses stemming from an inaccurate response. A purchaser’s solicitors should also conduct an environmental report. This will reveal whether there is a recorded flood risk. If so, additional inquiries should be carried out.
I'm purchasing a new build house in Morpeth with the aid of help to buy. The developers refused to move on the amount so I negotiated 6k of fixtures and fittings instead. The estate agent told me not reveal to my lawyer about the extras as it will affect my loan with the lender. Is this normal?.
All lenders require a Disclosure of Incentives Form from the developer of any new build, converted or renovated property, It is available online from the Lenders’ Handbook page on the CML website. CML form is completed and handed to the lender's surveyor when the inspection is done.
Lenders have different policies on incentives. Some accept none at all, cash or physical, while others will accept cash incentives up to 5%.
Hard to understand why the representative of a builder would be suggesting you withold information from a solicitor when all this will be clearly visible on forms the builder has to supply to its solicitor, the buyer's solicitor and the surveyor.
My step-father has suggested that I instruct his conveyancers in Morpeth. Should I use them?
There are no two ways about it the ideal way to select a conveyancing lawyer is to get guidance from friends or relatives who have actually previously instructed the firm that you are considering.
I've recently bought a leasehold house in Morpeth. Am I liable to pay service charges for periods before completion of my purchase?
In a situation where the service charge has already been demanded from the previous owner and they have not paid you would not usually be personally liable for the arrears. However, your landlord may still be able to take action to forfeit the lease. It is an essential part of leasehold conveyancing for your conveyancer to be sure to have an up to date clear service charge receipt before completion of your purchase. If you have a mortgage this is likely to be a requirement of your lender.
If you purchase part way through an accounting year you may be liable for charges not yet demanded even if they relate to a period prior to your purchase. In such circumstances your conveyancer would normally arrange for the seller to set aside some money to cover their part of the period (usually called a service charge retention).
Leasehold Conveyancing in Morpeth - Examples of Questions you should consider Prior to Purchasing
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Best to be warned whether redecorating or some other major work is pending to be shared by the tenants and may well materially increase the the service costs or result in a one time invoice. Does this lease have in excess of 82 years remaining?
I have noted on various online forums that when selecting a conveyancing lawyer they must be approved by your bank. This is my first home move but I have an AIP from Santander and I already have a high street conveyancing solicitor in Morpeth in place. Can HSBC need an approved conveyancer to be used? If so, where do I find that list so I can choose a conveyancing lawyer in Morpeth?
You should instruct a solicitor that is on the HSBC panel. Simply call your chosen Morpeth conveyancing solicitor to check if they are on the HSBC panel. If they are not on the panel you have a couple of alternatives open to you here:
- Complete the purchase with your existing Morpeth conveyancing practitioner but HSBC will no doubt use a property lawyer on their approved panel. This will result in additional charges together with probable interruption.
- Get a fresh conveyancer to act in the purchase, ensuring that they are on the HSBC conveyancing panel.
- Convince your property lawyer to pull out all the stops to get listed on the HSBC conveyancing panel.